;
Home / Knowledge / News / Textiles / Maharashtra cooperative mills owe govt ₹335 crore
Maharashtra cooperative mills owe govt ₹335 crore
08
Apr '18
Hundred and thirty Maharashtra cooperative spinning mills receiving state financial assistance owed till March last year ₹335 crore to the state in terms of share capital meant to be redeemed, the 2017 annual report by constitutional auditor Comptroller and Auditor General of India (CAG) has revealed. Cooperative mills promote self-reliance among cotton growers.

The state had extended share capital worth ₹1,806 crore to the mills. Of this ₹375 crore was due to be credited to the state by 2017 but only Rs 40 crore was credited, a top Indian daily reported citing the CAG document.

A test-check by CAG of 10 functional cooperative spinning mills found they had purchased 1,724 lakh kg of cotton during 2012-17 from within and outside the state without according priority to their own cotton grower members.

In defence, the state’s cooperative and textiles department said these mills did not have ginning facilities and hence, could not procure cotton from their own members.

Out of 280 cooperative spinning mills in the state, 130 receive financial assistance from the government. Of these, only 66 are functioning and only seven had made profits in the last five years.

The CAG report found a large number of the cooperative mills are located in non-cotton producing areas in violation of rules, which say 70 per cent of the cooperative spinning mills need to be in cotton-producing areas.

However, of the 130 mills receiving state assistance, Solapur hosted 40 per cent though it accounts for less than one per cent of the area under cotton.

The state government recovered barely any dues from the mills that were closed or liquidated. As many as 42 of the 130 cooperative spinning mills with a liability of ₹295 crore were closed, deregistered or had gone under liquidation, the report added. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Vietnamese garment firms plan to boost exports to Canada

Apparel/Garments | On 11th Dec 2018

Vietnamese garment firms plan to boost exports to Canada

As Vietnam is yet to sign a free trade agreement with Canada, so the...

Courtesy: Alizilla

Textiles | On 11th Dec 2018

Belgium, Alibaba promote inclusive global trade under eWTP

The Belgian Government and China’s Alibaba Group recently announced...

Courtesy: Kai Pilger from Pexels

Textiles | On 11th Dec 2018

India's textile-apparel exports fell slightly in H1 FY19

India’s overall textile and apparel exports in H1 FY19 stood at $18.4 ...

Interviews View All

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Smita Murarka, Amanté

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Abhishek Dhanuka,

Abhishek Dhanuka

Vyom International Pvt Ltd, established in 2002, is one of Surat's leading ...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

S Ziya Gumuser, Teknomelt

S Ziya Gumuser
Teknomelt

Turkish nonwoven manufacturer Teknomelt has been around for only seven...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

Leave your Comments


December 2018

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

news category


Related Categories:

Advanced Search