Uttar Pradesh Chief Minister plans to revive defunct woollen mills

Uttar Pradesh Chief Minister plans to revive defunct woollen mills

India’s Uttar Pradesh Chief Minister Yogi Adityanath during a review meeting with officials from the department of handicrafts and khadi, directed officials to revive state’s century old defunct woollens producing units in UP by infusing new technology for manufacture. He also said that revival packages should be drawn up for such units.

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 woolen 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, Lal Imli, then producing less than 5 % 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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