 "Second phase of revival of New Bhopal Textile Mills initiated")
The Union Minister of Textiles Dr K Sambasiva Rao today initiated the second phase of revival here, and said the mill would soon attain double of its existing capacity. Besides New Bhopal Textile Mills, Tapti Mills in Burhanpur will also be revived.
Set up in 1937, the mill was referred to Board for Industrial and Financial Reconstruction (BIFR). Under the first phase, National Textile Corporation Limited replaced 16,848 spindles and commissioned 25,200 new spindles with an investment of Rs 27 crore in 2008. Although this resulted in increase of monthly production from 1800 kilograms per day to 5000 kilograms of textile per day, it required further capital infusion.
More From This Section
The second phase of modernization would increase production from existing 5000 kilograms per day to 14000 kilograms textile per day. The mill would provide direct jobs to 650 workers from existing 380 workers. 'It would support 1000 local families and secure employment for them for a long duration of time,” the minister said. The modernisation process is expected a total sale of approximately Rs 72 crore every year.
'This mill will soon have jobs for more workers and it is proposed to be linked with MNREGS (Mahatma Gandhi National Employment Guarantee Scheme). I am sure that with the support of the Textiles Ministry, New Bhopal Textile Mills will prove to be a catalyst of industrial development in the region,” the minister further said.
National Textile Corporation Limited (Madhya Pradesh) took over seven loss making mills which have incurring losses since 1992. All of them were referred to BIFR, five of these seven mills were closed as unviable units. As per the scheme of arrangement all the workers of the five closed mills were given retirement.