THIRUVANANTHAPURAM: The state government has sanctioned `10.50 crore as working capital for textile mills under the industries department. It will help in the reopening of five mills that were closed due to a fund crunch.
The five mills are Prabhuram Mills in Alappuzha, Kottayam Textiles in Kottayam, Edarikode Textiles in Malappuram, Sitaram Textiles in Thrissur, and the Thrissur Cooperative Spinning Mill. The fund will help in the better functioning of other mills as well, Industries Minister P Rajeeve said in a statement on Saturday. “The government’s policy is to protect the public sector enterprises and industrial units in the cooperative sector. All support will be given to them,” he said.
TNIE in June had run a report on the layoff at these five mills that rendered over 1,000 workers jobless. It pointed out the government’s failure to provide funds to the mills to buy cotton. The working capital sanction will help the mills give work and wages to staffers, Rajeeve said. The closed mills will be reopened before Onam.
The government is proceeding with the renovation of mills in a phased manner. The state government’s intervention gained relevance in the wake of the non-functioning of the National Textile Corporation under the Union government.
The mills were affected by the global economic crisis and, unhindered import of clothing and raw materials. The cost of raw materials and higher power charges worsened the crisis.