+917718880355

news

Govt mulls over reviving operations of Komalapuram spinning mill

YarnsandFibers News Bureau 2015-04-19 12:00:00 – Kerala

Kerala government contemplating on the possibility of reviving the operations of Komalapuram Spinning and Weaving Mills, public sector company located at Komalapuram, near here. The unit which was launched as Kerala Spinners Limited a subsidiary of a private entity in 1964.

In March 2003, the company suffered losses and illegally shut down. The company was declared as a sick unit by the government in 2006. The unit was formally taken over by the government in November 2011 and handed over to the Kerala State Textiles Corporation Ltd. (KSTC)

The company, rechristened as Komalapuram Spinning and Weaving Mills, was subsequently inaugurated by former Finance T.M. Thomas Isaac in February 2011. However, the operation of the unit has not taken off owing to certain legal hurdles.

Chief Minister Oommen Chandy convened a meeting of people’s representatives, company officials and trade union leaders at the District Collectorate on Friday. At the meeting, KSTC Managing Director A.V. Rajan informed that machinery worth Rs. 46 crore present at the unit remained operable and that there were no procedural obstacles in procuring raw materials or marketing the products.

He added that an estimated amount of Rs. 20 crore would be required in re-launching the facility and required a total of 352 employees. The former employees, who were laid off at the time of the closure, will be provided the first priority during the employment process.

He further added that a meeting will be soon called of the Industries Minister, the Finance Minister, concerned officials and other stakeholders of the company at Thiruvananthapuram to discuss the issue of reviving the company.

District Collector N. Padmakumar proposed reviving the functioning in two phases. He called for setting a cut-off period of 4-5 months for launching the spinning operations. The commencement of weaving at the factory would require more time for providing specialized training for the workers. An amount of Rs. 2.30 crore must be released to the Kerala State Electricity Board (KSEB) for launching the tender process to ensure electricity connection at the unit.

K.C. Venugopal, MP, urged the Chief Minister to issue the necessary directions to the Advocate General for clearing the existing legal hurdles relating to labour issues.

0 0 vote
Article Rating
0 Comments
Inline Feedbacks
View all comments

Market Intelligence

Ask for free sample Report


why us?
21 yrs

experience

Fortune 500

Customer Base

100%

dedicated team

55+

Countries Served Worldwide


newsletter

Register below to receive our newsletters with latest industry trends and news!

WeCreativez WhatsApp Support
Our support team is here to answer your questions via WhatsApp. Ask us anything!
? Hello