The Kerala state government is in the process of formulating
a package to bail out the crisis-ridden textile and weaving
sector in the state, according to Kerala Chief Minister
A K Antony.
the cooperative sector Priyadarshini Spinning Mills at
Meenadom, Antony said his government is fully aware of
the intensity and extent of the unprecedented crisis.
to him, the only way to overcome the crisis is to modernise
the system and use the latest technology in production.
He hoped the new unit will be able to provide a model
for other units in the industry.
on the occasion, the ruling United Democratic Front (UDF)
convenor Oommen Chandy said the progress of the textile
mill is affected on account of political vendetta during
the Left Democratic Front (LDF) rule. "Otherwise
the unit, registered in 1994, would have been commissioned
five years ago."
Cooperation Minister M V Raghavan stressed the need for
cooperative sector banks to keep a strict financial discipline
and take immediate steps to get themselves rid of rampant
corruption. "More than Rs 12,000 crore is lying idle
with the cooperative sector banks. Unless imaginative
credit plans are formulated, especially for job creation,
they will have to face mounting loss."
Priyadarshini Cooperative Spinning Mills, one of the four
sanctioned during the former UDF ministry, had fallen
on lean days ever since the LDF came to power. One of
the reasons was the difficulty in getting financial assistance
from the district cooperative bank, which pointed out
that the project, which planned for 3,000 spindles, was
a lull of more than five years, the unit got into a revival
mode after the present UDF government came to power. With
active involvement of Texfed and the State Cooperative
Bank, the original project was revised and enhanced to
first phase of the project, which the chief minister commissioned
yesterday, consists of 6,000 spindles. This will be enhanced
to 12,000 and later to 25,000 during the second phase.