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

Azerbaijan's Gilan Textile Park raises exports by 40%

Apparel/Garments | On 18th Aug 2018

Azerbaijan's Gilan Textile Park raises exports by 40%

Azerbaijan's Gilan Textile Park has raised its exports by 40 per cent ...

CPD studies living cost of Bangladesh RMG workers

Apparel/Garments | On 18th Aug 2018

CPD studies living cost of Bangladesh RMG workers

The living cost of readymade garment (RMG) workers in Bangladesh...

Brazilian cotton price index returns to April 2018 level

Textiles | On 18th Aug 2018

Brazilian cotton price index returns to April 2018 level

Cotton prices dropped in Brazil in the first fortnight of August as...

Interviews View All

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Sandip Bhojani, Manthan Patel

Krypthm Tradelink LLP is a Surat-based manufacturer of westernwear....

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Isabel Herranz
European School of Business & innovation

Cutting-edge ideas like the Internet of Things and artificial intelligence ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

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


August 2018

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

news category


Related Categories:

Advanced Search