Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

Maharashtra allows privatisation of spinning mills, powerlooms

The Maharashtra government has decided to permit privatisation of spinning mills and powerloom societies that are operated as a cooperative in the state. The state’s new textile policy permits cooperative spinning mills and powerloom societies to change land use which permits them to start operations in other than industrial purposes. As per the policy, cooperative spinning mills and powerloom societies will be allowed to be privatised, provided they are agreeable to return to the government the equity, loan and interest. The new policy will be in effect from 2018 to 2023.

A government official disclosed, “If there is any change in the industrial use of the land, then an amount will have to be paid to the government as per the prevailing rules under the ‘one time exit policy’.”

Of the 136 societies and mills in Maharashtra, that had asked for funds in the form of a share capital, out of which 66 are running, while others are within the installation stage and a few are into liquidation while three are closed.

To encourage cooperative mills, the state government’s textile department provides funds to cooperative cotton mills 45 per cent of share capital, while 50 per cent are required to be raised in the open market and 5 per cent is borne by the mill board. In the case of mills run by Scheduled Caste (SC) members, the state textile department will provide fund up to 45 per cent of share capital, 50 per cent by the social justice department and 5 per cent will be raised by the mill board.

A textile department official says, “There were no options available before loss making or under liquidation powerloom societies or cooperative mills for their revival. Now, they will have an option by changing the use of land provided following the rules under one-time exit policy.”

 
LATEST TOP NEWS
 
 
MOST POPULAR NEWS