Home / Knowledge / News / Textiles / Konark Jute Mill may be privatised
Konark Jute Mill may be privatised
12
Feb '10
Rather than shutting down the sick Konark Jute Mill, the Orissa government has opted to privatize it. Board of Industrial Development Corporation of Orissa Ltd (Idcol) and the existing owners of the mill will take a final decision with regards to demand for higher wages from workers, before proceeding further with the process of privatization.

In the meantime, the State government has decided to carry out negotiations with Piyush Suppliers, the company which has presented an offer for acquiring the unit through the Company Court, in accordance with government's terms and conditions.

The decision was taken at an important meeting officiated by the State Finance Minister, Prafulla Chandra Ghadai. While addressing the press subsequent to the meeting he informed that over 800 workers employed in the unit are insisting on higher compensation.

The unit's total loss, inclusive of its debt of Rs 6 million to farmers has touched Rs. 240 million. Moreover, amidst other liabilities the company is also accountable for payment of statutory dues of ESI and EPF amounting to Rs 70 million.

Ghadai added that, as the payment of enhanced compensation to the workers is subject to Idcol's financial strength and hence its panel would consider the matter prior to reaching a conclusion.

He said, the government will initiate efforts to continue running the unit rather than shutting it down and that if the bid of Piyush Suppliers varies with government's terms and conditions, then they may summon fresh bids for sale of the unit.

According to the sources, the production at the Konark Jute Mill is bare minimum. The unit's former workforce of 1500 has been trimmed down to 800 workers, subsequent to the induction of voluntary retirement scheme (VRS). Of total 200 looms in the unit, just 40 looms are operational and has never been run at full capacity till date.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search