Maharashtra approves Rs 36.4 cr grant to Nilkanth Cooperative Spinning Mill

The Maharashtra government has approved a special grant of Rs 36.4 crore as share capital for the Nilkanth Cooperative Spinning Mill in Akola. The decision was made as a ‘special case’ to revive the mill, which has been closed since 2008. The money is intended to give the necessary share capital to restart the mill's operations. This funding is crucial for the mill to attract bank loans and other financial assistance needed for its revival. The decision was approved by the state cabinet despite objections from the finance and planning departments. Led by Randhir Sawarkhar, Vice-Chairman, the mill will help support support local farmers and generate employment in Vidarbha, a major cotton-producing region.

The revival of the mill is expected to benefit cotton farmers in Western Vidarbha. It will create a local market for their raw cotton, which currently has to be sold to mills in other states like Tamil Nadu. This will ensure that the revenue generated from processing the cotton remains within Maharashtra.

Established in 1965 and beginning operations in 1970, The Nilkanth Cooperative Spinning Mill ceased operations in 2008 due to ‘technical reasons,’ although insiders point to issues like union protests and high operating costs. Despite having 150 acre, the management sought a government grant rather than monetizing the asset to revive the mill.