Govt plan to revive defunct spinning mill through private partnership

The state government plan to put back into operation Kalinga Cooperative Spinning Mill at Govindpur in Dhenkanal district which is shut since 2002, through private partnership strategy, said minister for handlooms and textiles Sarojini Hembram.

Besides, the minister said that the government would be taking steps to wind up the defunct Shree Jagannath Weavers Cooperative Spinning Mill at Nuapatna, Tigiria in Cuttack district and appointed liquidator for this purpose.

This mill shut since January 2005, has got liabilities to the tune of over Rs 43 crore against assets worth Rs 1.62 crore, according to its latest audit report till March 2011. Over 900 of the 925 employees have also been paid over Rs 4.92 crore under VRS, Hembram said.

An officer in handlooms and textile department said that they have taken the first step to revive one of the six defunct mills in Dhenkanal district and asked for a detailed project report (DPR) for this purpose. The mill is closed since long and therefore all aspects need to be looked into seriously before taking any step.

The government officer said that if this plan succeeds the department would take steps to revive two more defunct mills, Sarala Spinning mill, Jagatsinghpur and Weavers Cooperative Spinning Mill, Tora in Bargarh though private participation.

Under voluntary retirement scheme (VRS) over 7,400 employees working in these defunct mills, including Kalinga spinning mill, had been paid over Rs 37.48 crore as a support to their family.

Currently, six co-operative textile mills are shut in the state.