These units are operated by state-owned entities such as UP Cooperative Spinning Mills Federation, UP State Textile Corporation, UP State Spinning Company, and UP State Yarn Company.
The Uttar Pradesh government has initiated the acquisition of defunct textile mills with the intention of reallocating them to the industry. According to estimates, more than 1,000 acres of prime land assets are tied up in these units across the state. These units are operated by state-owned entities such as UP Cooperative Spinning Mills Federation, UP State Textile Corporation, UP State Spinning Company, and UP State Yarn Company.
It has been observed that these defunct units collectively have liabilities amounting to nearly Rs 3,000 crore owed to various agencies, including financial institutions. Unfortunately, the chances of revival for these units seem bleak.
Nand Gopal Gupta Nandi, Industrial Development Minister, UP, announced that the state plans to acquire the land parcels and allocate them to investors after settling their outstanding liabilities. Although the state has waived a debt of Rs 500 crore on these units, sources indicate that the necessary funds to clear the remaining debt will be generated through auctions.
UP Cooperative Spinning Mills Federation alone possesses over 700 acre of land spread across different districts. Meanwhile, the proposed restructuring action plan involves the establishment of an MSME industrial park in the Kanpur region, known as one of the most industrialised and textile hubs in North India.
In preparation for a grand ground-breaking ceremony, the government is gearing up to launch projects worth almost Rs 10 lakh crore. Recognising the industry’s urgent need for land to establish units, the UP government is making concerted efforts to expand the industrial land bank in manufacturing and commercial hubs.