Cabinet Clears First Instalment To Settle Liabilities And Unlock Land For Textile Projects
The Odisha Cabinet has approved a ₹200 crore budgetary provision to clear outstanding liabilities of closed cooperative spinning mills and powerloom units, a move aimed at accelerating investment and job creation in the state’s growing textile and apparel sector.
The decision will help settle long-pending dues of defunct units operating under the Odisha State Cooperative Spinning Mills Federation Ltd (SPINFED) and unlock valuable industrial land for future manufacturing projects.
State officials view the initiative as a key step in Odisha’s broader strategy to emerge as a major textile and apparel manufacturing hub, attracting companies seeking alternatives to traditional textile centres facing labour shortages, rising costs, and capacity constraints.
Government Targets Revival Through Land Monetisation
According to officials from the Handlooms, Textiles and Handicrafts (HT&H) Department, the settlement will help remove legal and financial hurdles associated with several non-operational textile units.
Odisha Chief Secretary Anu Garg said liabilities totaling ₹361.67 crore have been identified across spinning mills, powerloom units, and one sizing unit spread over approximately 261.2 acres of land.
The Cabinet has approved ₹200 crore as the first instalment to facilitate one-time settlements with creditors and financial institutions.
Once liabilities are settled, the land can be transferred to the Odisha Industrial Infrastructure Development Corporation (IDCO), making it available for industrial development.
The government intends to utilize these strategically located parcels primarily for textile, garment, and apparel manufacturing projects capable of generating large-scale employment.
Odisha Looks To Reverse Labour Migration
For decades, Odisha has supplied a significant workforce to textile clusters in states such as Tamil Nadu, Karnataka, Gujarat, and Maharashtra.
The government now hopes to create employment opportunities closer to home by attracting textile manufacturers to establish operations within the state.
Officials believe the availability of industrial land, supportive policies, and improving infrastructure can position Odisha as an attractive destination for domestic and international apparel companies.
The state has already strengthened its textile ecosystem through dedicated industrial parks, investment incentives, and improved connectivity through highways, ports, and industrial corridors.
Textile Parks Driving Investment Momentum
Odisha’s textile ambitions have gained momentum in recent years through the development of large-scale manufacturing infrastructure.
During the Odisha TEX 2025 summit, the state government unveiled six textile and apparel parks along with two footwear parks featuring plug-and-play infrastructure designed to reduce project implementation timelines.
The government has also announced plans for additional textile clusters in districts including Balangir, Keonjhar, Sambalpur, Jagatsinghpur, Ganjam, and Cuttack.
Chief Minister Mohan Charan Majhi used the summit to outline an ambitious vision for the sector, targeting the creation of more than 100,000 jobs in textiles and apparel by 2030.
The event attracted investment proposals worth ₹7,808 crore from 33 companies, with the potential to generate over 53,300 jobs across the state.
Major Companies Expanding In Odisha
Several leading textile and apparel manufacturers have already committed investments in Odisha.
Among them is Hong Kong-based Epic Group, one of the world’s largest garment exporters supplying global fashion brands. The company has established an apparel manufacturing facility in Khurda district with an investment of $100 million and plans to invest an additional $150 million in technical textiles.
Page Industries, the exclusive licensee of Jockey and Speedo in India, has invested ₹750 crore in a major apparel manufacturing facility in Cuttack district. The project is expected to generate more than 5,500 jobs and represents the company’s first major manufacturing expansion outside Karnataka.
Aditya Birla Group companies have also expanded their presence in the state. Hindalco Industries recently signed agreements to establish apparel manufacturing facilities in Keonjhar and Sambalpur with a combined investment of ₹200 crore. The projects are expected to create approximately 2,400 direct jobs, particularly for women and local youth.
A Key Step In Odisha’s Textile Ambitions
The ₹200 crore approval reflects Odisha’s determination to build a robust textile and apparel ecosystem capable of attracting large-scale investments and generating employment.
By resolving legacy liabilities and unlocking industrial land, the state aims to accelerate project implementation and strengthen its position as an emerging manufacturing destination.
As more textile companies look beyond traditional manufacturing hubs, Odisha is positioning itself to capture a larger share of India’s rapidly evolving textile and apparel industry.
