Jajpur: Even as 20 years have passed since the closure of the state-owned Konark Jute Mill in Dhanmandal in this district, the state government seems to be lacking in efforts for its revival, a report said.
The jute mill was shut down in 2001 due to shortage of raw material and sustained loss. It has been lying defunct since then and no concrete efforts have been made for its revival.
The closure of the jute mill rendered over 26,000 employees and workers jobless.
It was a profit-making and viable unit of the state government. However, due to alleged mismanagement and corruption the mill slipped into bankruptcy and was finally shut down.
Reports said the revival of the jute mill seems not to be on the government agenda. It became clear when Barchana MLA Amar Prasad Satapathy, who is also from ruling party, questioned the steps being taken by the state government on the revival of the jute mill in the State Assembly in October, 2020.
The concerned minister replied that the Chowdwar-based OTM, Jharsuguda-based Bhaskar Textile Mills Ltd, Bhubaneswar-based Orissa State Handloom Development Corporation and Baripada-based New Mayurbhanj Textile Mill have been shut down.
However, the minister failed to give any convincing reply on the revival of this sick jute mill and creation of employment opportunities. Reports said that the foundation stone for the jute mill was laid in 1975 when Nandini Satpathy was the Chief Minister.
Later, the jute mill was established at a plan outlay of Rs 8 crore on the joint efforts of the Centre and the state government. The jute mill was inaugurated by then Union Minister for Steel and Mines Biju Patnaik in 1979.
The plant had then employed over 2,600 labourers including 1,200 permanent staff. The mill was producing 13,240 tonnes of different varieties of sacks. The mill incurred loss from the start which continued for 12 years.
Later, it started manufacturing a special variety of sack on the efforts of then MLA Amar Prasad Satpathy in 1991. This helped it earn profits till 1994.
Later, then Chief Minister Biju Patnaik sanctioned Rs 8 crore for its modernisation and renovation. The labour outfits had then alleged that several lakhs from the sanctioned funds were usurped. The mill was procuring raw materials from the farmers of Jajpur, Kendrapara and Jagatsinghpur districts.
However, the authorities alleging that the jute procured from these districts were of sub-standard quality procured two new varieties of jute from Kolkata. This paved the way for the downfall of the mill as it again turned into a loss making unit and was closed down in 2001.
The state government sold the jute mill when its accumulated losses touched Rs 27 crore in 2011. A private company Sanatan Commercial bought the jute mill for Rs 13 core, but it failed to run the mill and vanished overnight.
PNN