ROURKELA: After eight years of closure, the spinning mill at Sundargarh’s Kirei had started taking baby steps into revival under the new management of Shri Hari Spinners Pvt Ltd (SHSPL) but a section of retired and old workers have locked the factory gate from Wednesday.
The only industry for Sundargarh district headquarters town and sole spinning mill in the district, the agitation has shaken the confidence of the new investor.
Under the banner of the Ashoka Synthetics Mazdoor Sangh, agitators blocked the company’s gate from Wednesday, demanding reappointment of old workers, minimum wages and eight hour duty.
Established as Gangpur Weavers Co-operative Spinning Mill over 60.11 acre with commercial production from 1985, the unit ran into financial trouble and was closed in August 1991. The Odisha government sold the mill to a private player in January 1993 and it was renamed Ashoka Multiyarn Mills Limited (AMML).
However, loan repayment and other issues sent the mill to corporate insolvency resolution process (CIRP) in 2016. The National Company Law Tribunal (NCLT) passed order for liquidation two years later. With no buyers coming forward, the auction price was reduced.
In March 2023, the SHSPL won the bid and subsequently deposited Rs 14.27 crore with the liquidator and also invested another Rs 3.70 crore to reopen the mill.
The SHSPL management sources said production started on a limited scale with spinning of 12,000 spindles against the capacity of 40,000 spindles per day and there was plan is to enhance production and modernise the unit with investment in new machineries and technology.
Despite reappointment of many of the old workers and assurance to address legitimate demands with stabilisation and expansion of the unit, the agitation has come as a shock.
Sundargarh sub-collector Dasarathi Sarabu said the new management has given reappointment to many old workers, cleared dues of old workers’ and in writing promised to absorb more as production ramps up.
During a meeting on Thursday evening, the agitators persuaded to allow the company to gain strength for revival and they agreed to call off the agitation. However, the agitation continued for the fifth consecutive day on Saturday.