40 sick spinning mills in Karnataka down shutters

09 Dec '11

2 min read

All in all 40 spinning units in Karnataka including 37 private sector units have been closed down after turning sick.

The Karnataka State assembly was informed regarding this closure by State Minister for Textiles Varthur Prakash who informed that after 40 mills ceased operations due to financial constraints, now there are 66 mills functional in the state which includes 11 in the cooperative sector.

Apprising about the steps initiated by the state government to improve the financial condition of the spinning units functioning in the cooperative sector, the Minister said that National Cotton Development Corporation (NCDC) extended financial aid to these mills, and added that the Hulakoti based Gadag Cooperative Spinning Mill was provided a sum of Rs. 73.6 million to make it economically viable.

Mr Prakash further informed that the government also allocated Rs. 135 million for revitalization of the Banahatti based Banahatti Co-operative Spinning Mills.

The Department of Textiles has been directed to disburse Rs. 117 million in form of term loans and Rs. 13.5 million by way of share capital assistance to the said mills, and the Department has already released Rs. 94.4 million of the said sum.

The state government has also directed the Education Department to buy fabrics for producing school uniforms for students from economically backward sections from the Handloom Development Corporation.

Fibre2fashion News Desk - India

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