The Uttar Pradesh government is taking significant steps to boost the state’s industrial sector by acquiring defunct textile mills and allotting them to the industry. With more than 1,000 acres of valuable landlocked in these dormant units, the move aims to revive the state’s textile manufacturing capabilities.
Operated by state-owned entities such as the UP Cooperative Spinning Mills Federation, UP State Textile Corporation Limited, UP State Spinning Company Limited, and UP State Yarn Company Limited, these defunct mills collectively owe approximately Rs 3,000 crore in liabilities to various agencies and financial institutions. Unfortunately, the chances of these units bouncing back appear slim.
To facilitate this acquisition, UP Industrial Development Minister Nand Gopal Gupta Nandi has declared that the state will waive Rs 500 crore of the debt burden on these units. The remaining liabilities will be settled through fund generation via auctions.
The UP Cooperative Spinning Mills Federation alone possesses more than 700 acres of land scattered across multiple districts. Moreover, the government has unveiled a restructuring action plan that includes the creation of an MSME industrial park in the Kanpur region. This initiative will strengthen the region’s position as one of North India’s most prominent industrial and textile hubs.
To mark the beginning of these transformative projects worth nearly Rs 10 trillion, the government is organizing a grand groundbreaking ceremony. Recognizing the pressing need for land for new industrial units, the Uttar Pradesh government is determined to augment its industrial land bank in key manufacturing and commercial areas.
