You are here: Home » Companies » News
Business Standard

Revival of textile mills on cards

Vishnu Pandey  |  New Delhi/ Kanpur 

City-based textile mills Elgin and Lal-Imli are banking on Member of Parliament Sri Prakash Jaiswal, who has been elected for a third term from Kanpur, to regain their past glory.

Officials expect the textile ministry, which had accepted the revamp package for the Elgin mill, would now speed up the revival process. Elgin has been lying closed for the past two decades.

Revival of Elgin and Lal-Imli mills was one of the poll promises of Jaiswal.

According to a British India Corporation senior manager, Elgin mill requires Rs 102 crore for revival and payment of debts, apart from machinery upgradation. “The Cabinet has prepared a note and the proposal is likely to be accepted soon,” he said.

The operating rights would remain with the BIC on behalf of textile ministry. Around 200 new workers will be inducted in the mill in the first phase.

A government team has already visited the Elgin mill to review past year’s balance sheets, availability and condition of machinery, raw material (cotton bales) stock and finished products before recommending the financial package.

On the other hand, though the Board for Industrial and Financial Reconstruction (BIFR) accepted a Rs 273crore revival package for Lal-Imli a year ago, it was rejected by the Cabinet.

Instead, the Cabinet approved a tentative financial aid of Rs 10 crore for payment of wages. However, the ministry has undertaken a reconsideration study for viability of revival.

At Lal-Imli, around 2,500 workers have now returned to work but due to non-availability of raw material, only 10-20 percent of the mill’s production capacity is being realised, said Lal-Imli company secretary RK Mishra.

First Published: Wed, May 27 2009. 00:03 IST