Odisha Unlocks 261 Acres for Textile and Apparel Growth Through ₹200 Crore Settlement
The Odisha Cabinet has approved a budgetary allocation of ₹200 crore as the first phase of liability settlement for defunct cooperative spinning mills, powerloom units, and a sizing unit under the Department of Handlooms, Textiles and Handicrafts.
The initiative aims to clear long-pending liabilities and facilitate the transfer of valuable industrial land to the Odisha Industrial Infrastructure Development Corporation (IDCO), enabling the development of new employment-generating industries, particularly in the textile and apparel sectors.
The closed units, operated under the Odisha State Co-operative Spinning Mills Federation Ltd (SPINFED), had ceased operations due to financial difficulties, outdated machinery, and operational challenges. Following an assessment that revival was economically unfeasible, the state government opted to liquidate the units and repurpose their assets for industrial development.
An empowered committee established by the government evaluated the liabilities and assets of the non-operational spinning mills, powerloom units, and sizing unit. The committee estimated total statutory and non-statutory liabilities at ₹361.67 crore. The assets include approximately 261.2 acres of land across the state.
The approved ₹200 crore allocation will be utilized for one-time settlement (OTS) of outstanding dues owed to creditors and financial institutions. The settlement is expected to remove legal and financial barriers, paving the way for the transfer of land assets to IDCO for future industrial projects.
State officials believe the move will unlock underutilized land resources, attract fresh investments, and strengthen Odisha’s textile and apparel manufacturing ecosystem. The initiative is also expected to create significant employment opportunities while enhancing the state’s industrial infrastructure.
The cabinet also approved a proposal to restore the original spellings of several place names that had been altered during the colonial period, following recommendations from a state-appointed committee.