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The Uttar Pradesh government has decided to revive nine defunct spinning mills under the public-private partnership (PPP) model.
The government would undertake competitive bidding to select partners, who would run the mills after paying user-charges for 10 years.
Owned by the Uttar Pradesh Cooperative Spinning Mills Federation Limited, these are located at Maghar (Sant Kabir Nagar), Nagina (Bijnor), Bulandshahr, Bahadurganj (Ghazipur), Kampil (Farrukhabad), Amroha, Bahedi (Bareilly), Fatehpur and Mau Aima (Allahabad).
The news of revival is music to the ears of thousands of employees of these units, which had been on the verge of sale after lying defunct for years. The employees had been opposing attempts to sell off these mills.
Earlier, the state government had sanctioned Rs 75 crore for voluntary retirement scheme (VRS) in these units to cut losses and downsize the workforce.
Now, the state Cabinet meeting chaired by Chief Minister Akhilesh Yadav has decided to revive them under PPP.
The Federation managing director has been directed to hold a pre-bid conference with prospective bidders and incorporate their recommendations in the bid document.
The State Bank of India (SBI) would be appointed as consultant for drafting of the bid document, which would contain terms and conditions for running them on user-charges.
All these mills would be subjected to physical inspection to identify any additional land, which would then be liquidated at the maximum valuation.
Besides, the state infrastructure and industrial development commissioner (IIDC) would chair a meeting with all the related banks, so that the Federation’s managing director could work towards onetime settlement of loans.
The government loan would be converted into equity, the Cabinet had decided.
The state government had decided to revive these units several months back to showcase its pro-industry agenda and protect jobs of thousands of employees.
