Textile mills in Maharashtra are incurring losses to the tune of Rs 10-40 crores each as almost 50 co-operative textile mills are either sick, closed or under liquidation process. The government's share in their capital ranges from 80 per cent to 45 per cent. Maharashtra government may soon allow the mills to sell off excess land in their possession to save them from further losses. Earlier they were never permitted to do so despite repeated requests. The government is yet to decide whether there should be a cap on saleable land.

The closure of all ailing mills was suggested earlier by the Suresh Halwankar Committee, to cut losses. The Congress and NCP reproached the suggestion as a ‘deliberate attempt’ to devastate the cooperative sector. Chandrakant Dada Patil, Textile Minister said they believed this decision would help ailing mills to revive their business as the government has invested huge amounts in them. He added that if this move does not help, the government would have to step in.

Most ailing mills are in smaller cities and towns and not a single one has that much excess land, which could fetch Rs 30-40 crores. Therefore, experts have termed this plan as ‘useless’ and ‘impractical’.