Maharashtra government extends financial aid to cooperative spinning mills

The Maharashtra government has approved financial assistance of nearly Rs 61 crores to two cooperative spinning mills located in Jalgaon and Ahmednagar districts. This decision aligns with the state's integrated textile policy, which aims to promote the textile sector and create employment opportunities.

Despite opposition from the state's finance and planning departments, the cabinet granted share capital assistance to the Ashirwad Cooperative Spinning Mill in Jalgaon and the Pingala Cooperative Spinning Mill in Ahmednagar. These mills will receive Rs 32.4 crores and Rs 28.3 crores, respectively.

However, the state's decision to provide financial aid has raised concerns due to the substantial amount of outstanding dues from other cooperative spinning mills. A total of 142 mills owe the state Rs 3,396.5 crores in share capital, of which only Rs 37 crores has been recovered.

The state's integrated textile policy for 2023-28 has allocated Rs 600 crores for financial assistance to cooperative spinning mills. While the government aims to support the sector, the allocation of funds to the two mills has sparked debate due to the significant amount of unpaid dues.