Industry Odisha Bureau, Jun13: Investors in Odisha’s textile sector will get a boost as the State Government has taken a major decision to ensure ready to move space for them.
The Government has decided to clear all liabilities of closed cooperative spinning mills, powerlooms and sizing units, paving the way for new textile & apparel industries, officials said.
The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, approved a major proposal for budgetary provision to settle outstanding liabilities of the closed Co-operative Spinning Mills and Powerloom Units under the Handlooms, Textiles & Handicrafts (HT&H) Department.
This landmark decision aims to unlock land resources for setting up new employment intensive industries, accelerating industrial growth and employment generation in the State, said Chief Secretary Anu Garg.
These units, operating under the Odisha State Co-operative Spinning Mills Federation Ltd (SPINFED) and registered under the Odisha Co-operative Societies Act, 1962, had become non-operational over time due to financial distress, obsolete machinery etc, she said.
As revival was unviable, the State Government resolved to liquidate these units making the assets available for fresh industrial investments, Garg informed.
To streamline the process, an Empowered Committee was constituted to oversee liability settlement, asset transfer, and land utilisation.
Following detailed reconciliation, statutory and non-statutory dues were assessed at Rs 361.67 crore for spinning mills, powerloom units & one sizing unit spread over 261.2 acres.
In a decisive step forward, the Cabinet approved Rs 200 crore as the first-phase budgetary provision to settle the outstanding liabilities of the defunct units, she stated.
This funding will support a one-time settlement (OTS) with creditors and other institutions, enabling the removal of legal encumbrances and facilitating the transfer of land to the Odisha Industrial Infrastructure Development Corporation (IDCO) for establishing employment-intensive industries, particularly in the textile and apparel sectors, she added.
This decision of the Majhi Government marks a significant step towards revitalising Odisha’s textile ecosystem, enhancing industrial infrastructure, and creating new avenues for investment and job creation.
