Ailing Handloom Corp sells surplus land

Unable to meet its ever increasing financial losses, the Maharashtra State Handloom Corporation (MSHC) is now resorting to selling surplus land along with its mills.

Recently, the corporation sold nine acre of its 19-acre land off Umrer Road in Nagpur for about Rs 8.5 crore. However, officials are of the view that this step was taken a bit too late and will not help the ailing corporation much.

The MSHC's 209 employees, including the managing director, have not been paid salaries for several months. The dues amount to Rs 2.5 crore. Employees allege that they have not received salaries for more than one year.

Sanjay Mukherjee, director, Handlooms, Powerlooms and Sericulture, however, clarified that part of the salary is being disbursed every month. He, however, admitted that employees have not been paid their full salary for the last 12 to 14 months.

The MSHC will not clear the salary dues from the proceeds of sale of land as the government has not issued any instructions in this regard. P D Pathak, general secretary of employees union of MSHC, has threatened to launch an agitation if the dues are not cleared with interest.

"We could somehow manage till date but cannot manage any more without salary," he said.

The Powerlooms and Handlooms Directorate has applied for Rs 80 lakh state development assistance for MSHC and the proposal is likely to be cleared in the next session of the state legislature.

The Directorate is also hopeful of the Centre matching the amount raised from the sale of land to take the capital of the corporation to Rs 17 crore.

If all expectations of the corporation come through, it may be revived and will be able to offer work to almost 5,000 weavers who have been rendered jobless.