Ma­ha­rash­tra co­op­er­a­tive mills Owe Govt Rs. 335 crore

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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.

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