Kottayam Textiles to reopen on June 2 after a hiatus of over five years

Having remained shut for five and a half years, Kottayam Textiles, a unit of the Kerala State Textile Corporation Ltd, is set to resume operations on June 2.

According to Mons Joseph, legislator of Kaduthuruthy, the Textiles Corporation has already placed orders for new machinery and modern equipment as part of an upgrade initiative, using ₹8 crore sanctioned by the State government. In the latest State Budget, the government allocated a ₹40-crore package aimed at the future development of the unit.

“Under the leadership of Industries Minister P. Rajeeve and Cooperation Minister V.N. Vasavan, several rounds of discussions were held at the government level to address the crisis. Thanks to their joint efforts, steps are now under way to revive the unit,” said Mr. Joseph.

Prolonged shutdown

The prolonged shutdown of the Kottayam Textiles unit, located in Vedagiri under the Kaduthuruthy Assembly constituency, had severely impacted employees and workers, leaving them without salaries or benefits for years. As the local legislator, Mr. Joseph had also raised the issue multiple times in the Legislative Assembly.

One of the major hurdles in reopening was the ₹8 crore in unpaid electricity charges, which was resolved after a high-level meeting chaired by the Chief Minister. The government subsequently decided to waive the entire outstanding amount till December 31, 2024.

Joint request

Following this, the trade unions too agreed to submit a joint request to the government, seeking leniency on any remaining dues. Accordingly, Mr. Joseph submitted a petition to Electricity Minister K. Krishnankutty, requesting a deferment of residual arrears. Acting on the request, the Kerala State Electricity Board responded positively.

The unit had suspended production in January 2020 due to a severe shortage of working capital and raw materials.

Published - June 01, 2025 08:09 pm IST