Located at Govindapur in Dhenkanal district, the spinning unit has a liability of about Rs 2.9 crore towards the arrear of the staff payments.
Official sources said, though bidding for the sale of its assets were held earlier, Koustav Mining and Smelting Private Limited had moved the Orissa High Court against the government's move.
The High Court had asked the state government not to take any decision till the matter is disposed off. No decision was taken regarding the sale of asset of the spinning unit as it will be in violation of the High Court order, he added.
