Maharashtra cooperative mills Owe Govt Rs. 335 crore
Around 130 Maharashtra cooperative spinning mills receiving state financial assistance owed till March last year `335 crore to the state in terms of share capital meant to be redeemed, the 2017 annual report by constitutional auditor Comptroller and Auditor General of India (CAG) has revealed. Cooperative mills promote self-reliance among cotton growers. The state had extended share capital worth Rs. 1,806 crore to the mills. Of this, Rs. 375 crore was due to be credited to the state by 2017 but only Rs 40 crore was credited, a top Indian daily reported citing the CAG document. Out of 280 cooperative spinning mills in the state, 130 receive financial assistance from the government. Of these, only 66 are functioning and only seven had made profits in the last five years.
The state government recovered barely any dues from the mills that were closed or liquidated. As many as 42 of the 130 cooperative spinning mills with a liability of Rs.295 crore were closed, deregistered or had gone under liquidation, the report added.