Maharashtra government may allow ailing cooperative textile mills in the state to sell off their excess land so as to enable them to overcome their crisis. This is being done under a plan worked out by the govt. to revive sick textile mills under cooperative structure, textiles minister Chandrakant Dada told the news outlet.
Earlier the Suresh Halwankar committee’s recommendation for closure of all ailing mills to cut losses had caused uproar in the political circles. The opposition parties in the state had denounced it as a “deliberate attempt” by the BJP govt. to destroy the cooperative sector in Maharashtra.
Most of these units are spinning mills. Each unit has loss to the tune of Rs20-40 crore. These mills were never given permission to sell the extra land, despite repeated requests to this effect.
Industry experts call the plan “useless” and “impractical. Most of these mills do not own that much excess land that that could fetch them Rs30-40 crore, analysts say.