Lucknow, 15 Dec: The government of Uttar Pradesh has taken over abandoned textile plants for new allocation to the sector.
According to estimates, nearly 1,000 acres of good land are tied up in these units around the state. State-owned enterprises such as the UP Cooperative Spinning Mills Federation, the UP State Textile Corporation Limited, the UP State Spinning Company Limited, and the UP State Yarn Company Limited run these units. These defunct firms owe about Rs 3,000 crore in liabilities to various entities, including financial institutions, and have little likelihood of resurrection.
After clearing their outstanding bills, UP Industrial Development Minister Nand Gopal Gupta Nandi said that the state wanted to buy the land tracts for allocation to investors. While the state has revoked Rs 500 crore debt on these units, the remaining money would be raised through auction, according to sources.
The UP Cooperative Spinning Mills Federation alone has more than 700 acres of property scattered over several regions. Meanwhile, the planned limiting action plan involves the establishment of an MSME industrial park in the Kanpur region, which is one of North India’s largest industrialized and textile centers.
The government is preparing for a massive groundbreaking event to kick off projects worth around Rs 10 trillion. Since the sector has expressed an urgent need for land to establish units, the UP government is making every effort to build an industrial land bank in manufacturing and commercial hubs.
