Kerala - Alappuzha   

Bid to revive spinning mill gets a boost

By Our Staff Reporter

ALAPPUZHA, FEB. 22. The prospects of the revival of Alappuzha Cooperative Spinning Mill Ltd., Kareelakkulangara, in the district has brightened with the State Government agreeing to support the efforts of the mill in getting an aid from the National Cooperative Development Corporation (NCDC) for its expansion work.

Speaking to The Hindu, the mill chairman, D. Vijayakumar, said that the Chief Minister, Oommen Chandy, had promised at a high level meeting in Thiruvanamthapuram on Monday, that the State Government would give an undertaking to the NCDC that it would bear a part of the estimated cost for the development of the mill. The Government share would be announced later.

Guarantee

Earlier, the NCDC had insisted that the State Government should stand guarantee for providing a loan to the mill for its development works. But the State Government had rejected it. Following this, the development works of the mill came to a standstill. Mr. Vijayakumar said that according to the suggestions of the high level meeting, the mill would have to bear five per cent of the estimated cost of the expansion work.

The State Government and the NCDC would provide the remaining amount. The aid of the State Government would be considered as Government's share in the mill. Mr. Vijayakumar said that the expansion project would be finalised in two weeks and would be submitted to the NCDC.

Expansion work

Mr. Vijayakumar said that the expansion work of the mill would be implemented in phases. At present, the mill has a total of 6,000 spindles. This would be increased to 12,000 spindles in the second phase, Mr. Vijayakumar said.

The total capacity would increase to 25,000 spindles when the expansion is completed, he said.

The estimated cost for the expansion is around Rs. 30 crores. The second phase of the expansion work is expected to cost Rs. 10 crores. Mr. Vijayakumar said that the second phase of the expansion work would begin this year itself.

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Bid to revive spinning mill gets a boost

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