"Defunct Textile Mills in UP to Make Way for New Firms on 1,000 Acres"

In a strategic move to boost industrial development, the Uttar Pradesh government has embarked on acquiring defunct textile mills, unlocking over 1,000 acres of prime land assets across the state. These defunct units, operated by state-owned entities such as UP Cooperative Spinning Mills Federation, UP State Textile Corporation Limited, UP State Spinning Company Limited, and UP State Yarn Company Limited, collectively carry liabilities of nearly Rs. 3,000 crore owed to various agencies, including financial institutions.

The decision to acquire these defunct units aligns with the vision of UP Industrial Development Minister Nand Gopal Gupta Nandi, who announced the state's intention to allot the land parcels to investors after settling outstanding liabilities. While the government has already waived Rs. 500 crore in debt on these units, the remaining liabilities are slated to be cleared through auctions, according to sources.

With the UP Cooperative Spinning Mills Federation alone possessing over 700 cres of land across districts, the government aims to streamline the land utilization process for maximum economic benefit. The proposed action plan includes the establishment of an MSME industrial park in the Kanpur region, a key industrial and textile hub in North India.

Anticipating the urgent need for land to accommodate new industrial units, the UP government is set to conduct a mega groundbreaking ceremony to launch projects worth almost Rs. 10 trillion. This initiative reflects the government's commitment to bolstering the industrial land bank in manufacturing and commercial hubs, responding to the industry's call for increased land availability for expansion and growth.

BS