Yogi Plans To Revive Defunct Woollen Mills In UP

Yogi Plans To Revive Defunct Woollen Mills In UP

Uttar Pradesh chief minister Yogi Adityanath at a meeting with officials of handicrafts and khadi department, directed them to revive state’s century old defunct woollen producing units in the state by infusing new technology. Revival packages should be drawn up for such units, he said.

The Kanpur-based mill, run by the British India Corporation was founded in 1876 and was one of the most successful woollen mills in the British era. After flourishing for around 100 years, the mill gradually started accruing losses after Independence and liabilities piled up compared to revenue generated. It first went into the red in the early 80s and was finally declared sick and referred to the Board of Industrial and Financial Reconstruction (BIFR) in 1991.

Despite several attempts to revive the sick unit, the company finally has steadily cut production of its woollen products, one of which was worsted blankets. Once a textile hub, around 2001, Lal Imli was nominated for a revival package by BIFR. The revival package, however, came with many riders. It included a pay cut, and orders that no fresh recruitments would be allowed.

In 2013, the mill, then producing less than five per cent of what it used to in its hay days, was promised fresh finance for raw material from National Textile Corporation (NTC).

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