**Subject:** Status of Swadeshi Cotton Mills, Mau
**Summary:**
This document addresses Lok Sabha Unstarred Question No. 4144 regarding the Swadeshi Cotton Mills in Mau, posed on August 19, 2025. The mill, nationalized in 1986 under the National Textile Corporation Ltd. (NTC), ceased operations due to technical obsolescence, excess manpower, and poor productivity, leading to the erosion of NTC's net worth and its subsequent declaration as a sick company in 1993-94 under the Sick Industrial Companies (Special Provisions) Act. A revival scheme approved by the Board for Industrial and Financial Reconstruction (BIFR) initially proposed modernization through a Joint Venture (JV). A Memorandum of Understanding (MoU) was signed for this purpose, encompassing the Mau mill and ten others. However, the MoU was cancelled on September 14, 2010, due to the failure of Strategic Partners to execute transaction documents within the stipulated 240-day timeframe. Currently, the matter is sub judice before the High Court of Delhi. Consequently, there are no active proposals under consideration to either revive the mill or establish an alternative industry on the land. The government's plan for the productive use of the asset in Mau remains undetermined pending the court's decision. The Minister of State for Textiles, Shri Pabitra Margherita, provided this information.
Key Entities Referenced
Swadeshi Cotton Mills: A cotton mill, specifically the one located at Mau, Uttar Pradesh, that is the subject of the question.
Mau: A city in Uttar Pradesh, India, where the Swadeshi Cotton Mill is located.
SHRI RAJEEV RAI: The Member of Parliament who raised the unstarred question in Lok Sabha.
TEXTILES: The concerned ministry related to the question raised in the Lok Sabha.
SHRI PABITRA MARGHERITA: The Minister of State for Textiles who provided the answer to the Lok Sabha question.
National Textile Corporation Ltd.: A public sector undertaking under which Swadeshi Cotton Mill at Maunath Bhanjan was brought.
The Swadeshi Cotton Mills Company Limited Acquisition and Transfer of Undertakings Act, 1986: The act through which Swadeshi Cotton Mills was nationalized and brought under NTC.
Board for Industrial and Financial Reconstruction BIFR: A body to which NTC was referred under the Sick Industrial Companies Special Provisions Act due to erosion of net worth.
LOK SABHA
UNSTARRED QUESTION NO. 4144
TO BE ANSWERED ON 19.08.2025
REVIVAL OF SWADESHI COTTON MILLS
4144. SHRI RAJEEV RAI:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Government has closed the operation of Swadeshi Cotton Mills at Mau for over a decade,
if so, the reasons therefor;
(b) whether the Government is considering any proposal for its revival and re-opening in the near future,
if so, the details thereof;
(c) if not, whether the Government is considering establishing any alternate industry on this land located
at the heart of Mau city; and
(d) if so, the details thereof and if not, the details regarding the Government plan to make productive use
of this asset for the betterment of Mau region?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) & (b): Swadeshi Cotton Mill at Maunath Bhanjan was Nationalized and brought under National
Textile Corporation Ltd. (NTC) through The Swadeshi Cotton Mills Company Limited (Acquisition and
Transfer of Undertakings) Act, 1986. On account of technical obsolescence, excess manpower, poor
productivity, etc., the net worth of NTC mills got totally eroded by early 1990s, necessitating reference
to Board for Industrial and Financial Reconstruction (BIFR) under the Sick Industrial Companies
(Special Provisions) Act in the year 1993-94 and subsequently NTC was declared sick. As per the BIFR
approved revival scheme of NTC, Swadeshi Cotton Mills at Maunath Bhanjan was slated for
modernization through Joint Ventures (JV) route. Accordingly, NTC signed a Memorandum of
Understanding (MoU) for the modernization of Swadeshi Cotton Mills at Maunath Bhanjan along with
another 10 mills through JV route. The said MoU was cancelled on 14.09.2010 due to non-execution of
various transaction documents by Strategic Partners within stipulated time of 240 days. Presently, the
matter is sub-judice before the Hon’ble High Court of Delhi.
(c) & (d): No such proposal is under consideration at this stage as the matter is sub-judice.
*****