Public push for textile mills

Cuttack, March 31: The process of liquidation of Choudwar’s Orissa Textile Mills (OTM) is proving to be Orissa High Court’s toughest task.
But all that may change if a proposal-petition has its way in a company affairs’ bench hearing on April 8.
The PIL states that if the government comes forth to revive the sick mill, funds to the tune of Rs 50 crore would be mopped up in the form of “share capital” from former employees and public to support the project.
Again, if the government expresses disinclination for the project’s revival, then a consortium of OTM employees, Choudwar residents and interested private firms could form a “special project vehicle” to convert the factory complex into an integrated textile park within a year investing Rs 100 crore.
The intervening petition was filed by one Chandra Mishra, the president of Orissa Bekari Birodhi Abhijan, soon after the government filed a “recall petition” seeking closure of auction for which permission was granted by the high court on February 29.
Taking note of the recall petition filed on March 28, the company affairs’ bench posted a hearing for April 8.
The petition suggests using 87 acres of factory complex for revival of OTM and selling the rest to repay the employees’ arrears.
OTM was referred to the high court in 2002.
Auction of the assets, including 522 acres of prime land, is still under a liquidation process.
All along the court had made it clear that “an intending purchaser” who intends to run a factory and employ local people would be given preference.
Meanwhile, Koustuv Metals Private Limited had emerged as the frontrunner in the final bidding last month with an offer of Rs 43 crore. But, the government last week unveiled a fresh offer of Rs 50 crore. The government, through a petition, sought to recall the closure order of auction issued by the court on February 29.
“As soon as the sale consideration is deposited with the official liquidator, he shall inform the court, after which the case shall be listed for sale confirmation,” conceded company judge on February 29.
OUR CORRESPONDENT ; THE TELEGRAPH