Heavy losses incurred by Tamilnadu due to defunct mills
An application was filed under the Right to Information (RTI) Act seeking to get information about the defunct cooperative spinning mills in Tamil Nadu and the losses caused by them.
The reply provided by the Directorate of Handlooms and Textiles of Tamil Nadu, states that there are 18 cooperative spinning mills in Tamil Nadu, out of which 13 are defunct. As per the reply, the main causes of dysfunctioning of these units are obsolete machinery, poor financial performance, continuous loss and adverse market conditions.
The reply also states that after the mills went bad, the government closed down the units by implementing voluntary retirement scheme for the workers. However, the land and the buildings of the defunct mills were retained but they remained unused since then thus causing heavy losses to the tune of Rs. 525.59 crores to the state exchequer. The reply also said that the government has constituted a high level committee to suggest a suitable plan of action for the cooperative spinning mills.
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