Odisha approves ₹200 cr plan to repay closed textile units' liabilities

The Cabinet has approved the repayment plan remove barriers for transfer of the land to IDCO for industrial use and to attract fresh investments into the state's apparel sector

In a push to revive Odisha's textile and apparel sector, the state Cabinet on Saturday approved a ₹200 crore budgetary provision to clear outstanding liabilities of closed cooperative spinning mills and powerloom units, paving the way for fresh investments and employment generation.

 

The Cabinet decision will address long-pending liabilities of defunct units operating under the Odisha State Cooperative Spinning Mills Federation Ltd (SPINFED) and provide a critical land bank for the state's rapidly expanding textile and apparel sector.

 

The decision is a part of the government's broader strategy to transform the state into a major textile and apparel manufacturing hub at a time when several traditional textile centres across the country are grappling with labour shortages, rising costs, and capacity constraints.

   

According to the officials of the Handlooms, Textiles and Handicrafts (HT&H) Department, the move will unlock valuable industrial land and attract investment from leading domestic and global apparel manufacturers seeking alternative production destinations.

 

Once regarded as important pillars of the state's textile ecosystem, these units became unviable over time because of financial distress, outdated machinery, and falling competitiveness.

 

Odisha Chief Secretary Anu Garg said liabilities amounting to ₹361.67 crore have been identified across spinning mills, powerloom units, and one sizing unit spread over about 261.2 acres of land. The Cabinet has now approved ₹200 crore as a first instalment to facilitate one-time settlements with creditors and financial institutions, she said.

 

The settlement will remove legal and financial barriers for transfer of the land to the Odisha Industrial Infrastructure Development Corporation (IDCO) for industrial use. The government plans to utilise these strategically located parcels primarily for new, employment-intensive textile, garment, and apparel manufacturing projects.

 

For decades, Odisha has been a major source of migrant labour to textile clusters in Tamil Nadu, Karnataka, Gujarat, and Maharashtra. The state government now hopes to reverse that trend by creating jobs closer to home. Odisha's textile ambitions have gained momentum over the past few years with dedicated textile and apparel infrastructure, attractive incentive packages and improved connectivity through ports, highways and industrial corridors.

 

The state government has rolled out multiple textile and apparel parks and announced plans for new textile clusters in Balangir, Keonjhar, Sambalpur, Jagatsinghpur, Ganjam and Cuttack districts. During the first Odisha Textile summit 'Odisha TEX 2025', the government unveiled six textile and apparel parks and two footwear parks equipped with plug-and-play infrastructure aimed at reducing project implementation time for investors.

 

At the same event, Chief Minister Mohan Charan Majhi also announced an ambitious target of generating more than 100,000 jobs in the textile and apparel sector by 2030. The summit attracted investment proposals worth ₹7,808 crore from 33 companies, with the potential to create more than 53,300 jobs. The companies include major textile and apparel players such as Page Industries, KPR Mill, Sportking India, First Step Babywear and several garment manufacturers.

 

Among the major projects under implementation is the integrated textile and apparel park at Choudwar, where substantial investments are expected to create thousands of jobs. The state's textile infrastructure push is also receiving support from large industrial groups looking to diversify into apparel manufacturing.

 

Hong Kong-based apparel manufacturing giant Epic Group, one of the world's largest garment exporters supplying global fashion brands, has already established an apparel manufacturing unit with an investment of $100 million in Khurda district to generate over 5,000 direct jobs. It plans to invest $150 million more for another unit on technical textiles.

 

Page Industries (exclusive licensee of Jockey and Speedo in India) has invested ₹750 crore to establish a major apparel manufacturing facility at Ramdaspur in Cuttack district. This is the company's first large-scale expansion outside Karnataka and it aims to generate over 5,500 jobs.

 

Similarly, Aditya Birla Group companies have expanded their footprint in the sector. Hindalco Industries recently signed agreements to establish two apparel manufacturing units in Keonjhar and Sambalpur with a combined investment of ₹200 crore, expected to generate around 2,400 direct jobs, largely for women and local youth. The company already operates apparel manufacturing facilities in the state.