Mah govt to rope in foreign investors for revival of mills

In an effort to revive the spinning mill sector in the state, Maharashtra Government is planning to rope in foreign investment, creating a joint venture with the private sector or on lease to provide a new leash of life to closed mills and those under liquidation.

Apart from taking steps to start new spinning mills, the government is also considering various means to modernise and re-start closed mills and those under liquidation through co-operative or private sector.

Special emphasis would be given to re-start the sick, closed or under liquidation spinning units with concessional rate of finance. There are 28 such spinning mills in the state.

"The power loom sector in the state requires 1012.38 million kilogram of yarn. The spinning mills under the co-operative sector are just producing 1.20 million kilogram of yarn per annum, which is 10 per cent of the total requirement of yarn by the powerloom sector," Textile Minister Mohammed Arif Naseem Khan told PTI.

For speedy implementation of the erection programme of spinning mills, priorities in credit linked fund allocation shall be made in assessment to the progress in civil work and working spindles, he said.

The Minister also said that arrangements shall be made with the co-ordination of the Maharashtra Electricity Distribution company for uninterrupted supply of electricity and possibilities shall also be worked out to make financial tie-up in this regard under the prevailing schemes of the centre.

Khan said thrust would be given on establishing spinning mills in cotton cultivation areas like Vidarbha, Marathwada and North Maharashtra.
       
"Contract farming linkage shall be promoted," he said.
       
"To promote Ginning, Pressing activities including in existing units mainly in cotton cultivation areas of Vidarbha, Marathwada and North Maharashtra, credit-based capital incentive/subsidy including concessions in any area wherever needed, a special measure shall be taken up," he said.
       
Cotton growing areas of Vidarbha shall be taken up on priority and 100 acre land shall be provided to start the integrated activities by establishing textile parks, the minister added.
       
Khan said that the state government is keen to strengthen the handloom sector as well.

It plans to tie up with marketing chains like Fab India, Big Bazar, India bulls, Reliance retail and also rope in National Institute of Fashion technology and Weavers Service Centre into the production activities of the handloom sector.
        
Apart from providing infrastructure facilities and training at various handloom clusters in the state, he said that the government will also focus on implementing health package and insurance scheme for socio-economic upliftment of the weavers.
       
"There are 30,000 handlooms in the state. In the era of competition, these handlooms are finding it difficult to survive," Khan added.