Cotton Corporation of India (CCI), a Government of India undertaking under the Ministry of Textiles, is planning to set up its first ginning and pressing factory in Adoni, located at the border of Karnataka and Andhra Pradesh, in Kurnool district of the newly formed state of Seemandhra, carved out from the erstwhile Andhra Pradesh.
According to a Business Line report, CCI will take on lease 7.17 hectares of land from one of the sick units of the National Textile Corporation (NTC) to set up the ginning factory with capacity of 60,000 bales.
A memorandum of understanding (MoU) between the CCI and NTC has already been signed, and the NTC is now in the process of seeking approval of the Board for Industrial and Financial Reconstruction (BIFR) for leasing out the requisite land.
Initially, CCI plans to invest Rs. 100-200 million and would also consider investment in a warehouse in the cotton growing areas with the support of the state government.
The cotton ginnery in Adoni would be set up on a pilot basis, and if it is successful, the CCI would set up similar ginning factories in other states, including in the newly-formed state of Telangana, if the state governments offer land free of cost.
So far, the main task of CCI has been limited to market intervention activities to ensure minimum support price (MSP) to farmers in Gujarat, Maharashtra, and other cotton-growing regions.
In the ongoing cotton season from October 2013, CCI has so far purchased more than 440,000 tons of cotton, with about 40,000 tons of it being bought under the market intervention scheme.
Source:
http://www.fibre2fashion.com/news/Association-news/cotton-corporation-india/newsdetails.aspx?news_id=166240
