The Kerala government’s plan to implement a package to modernise and revive the ailing textile sector has failed to start. The government, despite resuscitating and taking over sick public sector undertakings, had not made any serious initiative for implementing the package.

An expert committee headed by P Nandakumar recommended a one-time fund infusion of Rs 494.81 crore of which Rs 317.89 crore was capital investment and Rs 176.92 crore was working capital — for reviving the 17 mills in the public and cooperative sectors.

The 17 mills together offer direct employment to 5,000 persons and indirect employment to 15,000 persons. The package had suggested a slew of reforms to give a fresh lease of life to the mills and optimise its employment potential. Implementation of the package is expected to address problems thrown up by demonetisation, inherent problems plaguing the sector such as lower capacity utilisation, and outdated technology.