State govt set up six member committee to easy shifting of textile mills

Maharashtra chief minister Devendra Fadnavis in a meeting with National Textile Corporation (NTC) official a fortnight ago made it clear that the government would help NTC shut its mills in Mumbai and develop the land, provided it set up textile units in Amravati. The condition is to set up the mills there, operationalize them and only then would the government allow NTC to commercially exploit its land in Mumbai.

The decision likely to be opposed by political satraps in Satara, Sangli, Solapur and Ichalkaranji who have interests in the textile industry in these regions.

To facilitate the shifting of the eight defunct mills of National Textile Corporation (NTC) and those in the process of being shut down. The state government has set up a six-member committee headed by additional chief secretary (textiles) Sunil Porwal

NTC has bought 40 acres in Vidarbha where it plans to set up four mills in lieu of the four it is planning to shut down in Mumbai. Of the 25 mills it owns in Mumbai, eight have already been shut down.

According to source, the BJP government is considering an increase in the capital subsidy being provided to those units, which are being set up in the cotton-growing areas of the state under the two-year old textile policy to give the industry a boost.

Currently, the state government offers 10% capital subsidy and 5-7% interest subsidy to those setting up textile units in the cotton-growing areas. The interest subsidy is for all units even those that are set up in Satara, Solapur, Ichalkaranji, which do not produce cotton. The increase in capital subsidy may become a sore point in these parts of the state.

Under the state’s textile policy, 738 units have been sanctioned. Of these 246 units are already operational and provide employment to 10,800 people.

Jalgaon is the largest producer of cotton in Maharashtra followed by Yavatmal in Vidarbha. Of the 80 lakh bales that are produced annually, 10% is from Jalgaon (north Maharashtra).