On 2nd June, Kottayam Textiles, a division of the Kerala State Textile Corporation Ltd., will reopen after being closed for five and a half years.
As part of an upgrade plan, the Textiles Corporation has already ordered new machinery and modern equipment using Rs. 8 crore (US $ 936,000) approved by the State Government, according to Kaduthuruthy MLA Mons Joseph. The government included a Rs. 40-crore (US $ 4.68 million) package in the most recent State Budget to support the unit’s future growth.
To overcome the situation, multiple rounds of government-level talks were conducted under the direction of Industries Minister P. Rajeeve and Cooperation Minister V.N. Vasavan. “As a result of their combined efforts, efforts are currently underway to revitalise the unit,” Joseph stated.
Employees and workers were negatively impacted by the protracted closure of the Kottayam Textiles facility, which was situated in Vedagiri under the Kaduthuruthy Assembly seat. For years, they were left without pay or benefits. Joseph, the local lawmaker, had also brought up the matter several times in the Legislative Assembly.
After a high-level conference led by the Chief Minister, the Rs. 8 crore (US $ 936,000) in outstanding electricity charges—one of the main obstacles to reopening—were settled. The government then made the decision to waive the whole amount owed through 31st December 2024.
After this, the trade unions also decided to jointly petition the Government for forgiveness of any unpaid debts. In light of this, Joseph petitioned Electricity Minister K. Krishnankutty to postpone the remaining debts. The Kerala State Electricity Board gave a favourable response to the plea.
In January 2020, the unit halted operations because of a serious lack of raw materials and working capital.
