40 spinning mills in Karnataka are sick units

BANGALORE: The state assembly on Monday was informed that as many as 40 spinning mills in the state, including 37 in the private sector, have been shut down as they were sick.In a written reply to independent member Goolihatti Shekhar, Minister  for Textiles Varthur Prakash said that while 40 spinning mills  were closed due to financial crises, a total of 66 mills, including 11 in the cooperative sector, were functioning.Informing about the measures taken by the state government to improve the fiscal status of mills working under the cooperative sector, he said that they have been extended financial assistance from the National Cotton Development Corporation (NCDC). “Already `7.36 crore has been released to Gadag Cooperative Spinning Mills, Hulakoti, to make it a financially viable unit.”He said that the government also accorded the sanction of `13.05 crore for the revival of the Banahatti Co-operative Spinning Mills, Banahatti.The Department of Textiles has been instructed to release `11.70 crore by way of term loans and `1.35 crore as share capital assistance, to the above said mills, of which `9.44 crore has already been released.The minister, in his reply, also informed that the state government has instructed the Education Depatment to procure cloth from the Handloom Development Corporation for the supply of school uniforms to students of economically weaker sections of the society.Meanwhile, to an other question raised by BJP member Vasantha Bangera, Minister for  Water Resources Basavaraj Bommai said that the state government has accorded sanction for over 30 works relating to reclamation of saline and wet lands at a cost of `80 crore.