Rejuvenation and Revival of viable PSUs-Setting up of and Open End Spinning Unit at Edarikkode Textiled - Administrative Sanction accorded - Orders issued. ...

GOVERNMENT OF KERALA Abstract Industries Department - Rejuvenation and Revival of Viable PSUs - Setting up of an Open End (OE) Spinning Unit at Edarikkode Textiles - Administrative Sanction accorded - Orders issued. INDUSTRIES (C) DEPARTMENT G.O.(Rt)No.950/2026/ID Dated, Thiruvananthapuram, 13-08-2026 Read:- 1. Letter No.KSTC/I-0/2025/D-296 dated 30.06.2026 from the Executive Chairman, BPT. 2. Minutes of the first Departmental Working Group of Industries Department held on 08.07.2026. 3. e-Anumathi No. AS/IND/26/52329 valid upto 31/03/2028. ORDER The Executive Chairman, BPT as per the letter read as 1st paper above, has submitted a proposal for setting up of an Open End (OE) Spinning Unit at Edarikkode Textiles, a unit of Kerala State Textile Corporation Ltd under Rejuvenation and Revival of Viable PSU scheme for an amount of Rs.410 Lakh & Rs.350 Lakh (Total- Rs.760 lakh) towards the project for the year 2026-27 and 2027-28 respectively. Edarikkode Textiles has been incurring continuous loss due to age old machinery and obsolete technology. The existing ring spinning facility in the mill is outdated and all the machinery except two Autoconers installed during 2022-23 are more than 35 years old. As the plant & machinery are very old, total replacement is essential for the complete modernization of the unit hence an alternative method for revival of the unit. The present project envisages cost-effective modernization by replacing the existing ring spinning facility by an Open End (OE) spinning unit. 2) There is a Budget provision of Rs.1486 Lakh for the year 2026-27 under the head of account 6860-01-190-95 for the scheme Rejuvenation and Revival of Viable PSU. The Executive Chairman, BPT has requested to sanction an amount of Rs.760 Lakh for the proposal of setting up of an Open End Spinning Unit at Edarikkode Textiles, a unit of KSTC from the head of account 6860-01-190-95. 3) The proposed project is expected to significantly improve operational efficiency, reduce manpower requirements, and enhance productivity and turnaround the unit. Due to budgetary constraints the total project cost is requested in a phased manner for the next two years. 4) The component wise split up with financial outlay for the year 2026-27 of the proposed project is detailed below:- Sl No Particulars Total (Rs Lakh) 1. Civil works 25.00 2. Plant & Machinery 300.00 3. Accessories 28.50 4. Electrical 56.50 Total 410.00 5) The Departmental Working Group held on 08.07.2026 considered the proposal and recommended for issuing Administrative Sanction for the proposal for setting up of an Open End Spinning Unit at Edarikkode Textiles, a unit of KSTC from the head of account 6860-01-190-95. 6) Accordingly, Government are pleased to accord Administrative Sanction for the proposal for setting up of an Open End Spinning Unit at Edarikkode Textiles, a unit of KSTC under Rejuvenation and Revival of Viable PSU, for an amount of Rs.4,10,00,000 (Rupees Four Hundred and Ten Lakh only) by debiting the expenditure under the head of account 6860-01-190-95 from the current year's budget provision. (By order of the Governor) A P M MOHAMMED HANISH ADDITIONAL CHIEF SECRETARY