State approves 20 cr assistance to mill controlled by BJP neta | Mumbai News

Mumbai: The Mahayuti govt has approved financial assistance worth Rs 20 crore worth of share capital to the Punyashlok Ahilya Devi Holkar Cooperative Spinning mill in Ahmednagar’s Jamkhed taluka. The mill is led by BJP MLC Ram Shinde, the chairperson of the state legislative council.
Speaking to TOI, Shinde said, “The mill will go a long way in helping to generate employment in the region. The assistance has been sanctioned but we have yet to receive the funds.” Shinde is a powerful leader from the Dhangar (shepherd) community.
The assistance is part of the Rs 76.8 crore approved for the mill. This includes state share capital worth Rs 36.4 crore and a long-term loan worth Rs 40.4 crore which was cleared by the Eknath Shinde-led cabinet shortly before the state polls last year. The Fadnavis-led govt has now approved the funds by clearing the project cost and providing Rs 20 crore of the share capital amount.
Significantly, the state finance department had objected to the Rs 76.8 crore assistance but was overruled by the Shinde cabinet in Oct 2024. The department had said the state had provided share capital assistance to 141 cooperative spinning mills up to March 2024. However, only Rs 37.7 crore had been returned to the state. Dues worth Rs 3,396.5 crore were still pending with the spinning mills. The finance department said the state should not approve any new financial assistance to cooperative spinning mills without recovering past dues.
The mill has been given assistance according to the scheme available for denotified tribes since it belongs to the Dhangar community. The state has approved the project cost of Rs 80.9 crore. Of this, mill directors have to raise 5% (Rs 4 crore), the state’s share capital is 45% (Rs 36.4% crore) and the long-term loan from the state is 50% (Rs 40.4 crore).
However, the state has introduced stringent conditions for its share capital contribution. The existing board of directors of the mill must submit security of personal assets equivalent to 5% of the disbursed amount within the next 3 months. Until this security is received, the disbursed amount cannot be spent, nor can an overdraft be drawn on the sanctioned amount. For a new board of directors to come into existence, they must deposit security of personal assets equivalent to 5% of the govt share capital.
The state is already facing financial strain. Its debt projection for 2024-45 was Rs 7.8 lakh crore. The govt also tabled additional supplementary demands worth Rs 1.3 lakh crore to help finance pre-poll welfare schemes, including the Mukhya Mantri Majhi Ladki Bahin Yojana.
Mumbai: The Mahayuti govt has approved financial assistance worth Rs 20 crore worth of share capital to the Punyashlok Ahilya Devi Holkar Cooperative Spinning mill in Ahmednagar’s Jamkhed taluka. The mill is led by BJP MLC Ram Shinde, the chairperson of the state legislative council.
Speaking to TOI, Shinde said, “The mill will go a long way in helping to generate employment in the region. The assistance has been sanctioned but we have yet to receive the funds.” Shinde is a powerful leader from the Dhangar (shepherd) community.
The assistance is part of the Rs 76.8 crore approved for the mill. This includes state share capital worth Rs 36.4 crore and a long-term loan worth Rs 40.4 crore which was cleared by the Eknath Shinde-led cabinet shortly before the state polls last year. The Fadnavis-led govt has now approved the funds by clearing the project cost and providing Rs 20 crore of the share capital amount.
Significantly, the state finance department had objected to the Rs 76.8 crore assistance but was overruled by the Shinde cabinet in Oct 2024. The department had said the state had provided share capital assistance to 141 cooperative spinning mills up to March 2024. However, only Rs 37.7 crore had been returned to the state. Dues worth Rs 3,396.5 crore were still pending with the spinning mills. The finance department said the state should not approve any new financial assistance to cooperative spinning mills without recovering past dues.
The mill has been given assistance according to the scheme available for denotified tribes since it belongs to the Dhangar community. The state has approved the project cost of Rs 80.9 crore. Of this, mill directors have to raise 5% (Rs 4 crore), the state’s share capital is 45% (Rs 36.4% crore) and the long-term loan from the state is 50% (Rs 40.4 crore).
However, the state has introduced stringent conditions for its share capital contribution. The existing board of directors of the mill must submit security of personal assets equivalent to 5% of the disbursed amount within the next 3 months. Until this security is received, the disbursed amount cannot be spent, nor can an overdraft be drawn on the sanctioned amount. For a new board of directors to come into existence, they must deposit security of personal assets equivalent to 5% of the govt share capital.
The state is already facing financial strain. Its debt projection for 2024-45 was Rs 7.8 lakh crore. The govt also tabled additional supplementary demands worth Rs 1.3 lakh crore to help finance pre-poll welfare schemes, including the Mukhya Mantri Majhi Ladki Bahin Yojana.