The Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, on Wednesday approved a modern spinning unit to be set up in Balangir district with an investment of ₹124 crore.
The proposed yarn manufacturing facility by Shree Ambica Cotspin Pvt Ltd is expected to boost the state’s textile value chain while accelerating economic activity in the KBK region, one of Odisha’s historically underdeveloped areas.
Bridging a key gap in textile value chain
Although cotton cultivation has expanded steadily across several districts, much of the produce has historically been sent outside the state for conversion into yarn and other textile products due to the lack of downstream processing infrastructure.
Officials said the proposed unit will address this gap by enabling forward integration from cotton ginning to yarn production within Odisha.
Shree Ambica Cotspin, an Odisha-based enterprise with over 27 years of experience, plans to set up a state-of-the-art facility capable of producing quality yarn for domestic and industrial markets.
“The project could become a key link in Odisha’s farm-to-fabric strategy by ensuring that greater value generated from locally grown cotton remains within the state economy,” Chief Secretary Anu Garg said after the Cabinet meeting.
Boost to jobs and regional economy
The unit is projected to create direct employment for around 300 people, along with indirect opportunities in logistics, maintenance, packaging, trade and allied services.
For Balangir and the broader KBK region, where industrialisation has been limited, the project is expected to open up new avenues for livelihoods and skill development.
Catalyst for textile cluster
The availability of locally produced yarn is expected to reduce transportation costs, improve supply chain efficiency and enhance the competitiveness of textile operations in Western Odisha.
Officials added that the project aligns with the state’s strategy of promoting industry in backward regions by leveraging local resources.
Industry experts said the unit could have a multiplier effect, attracting investments in weaving, fabric processing, garmenting and ancillary services. Over time, this may help develop an integrated textile cluster in Western Odisha, reducing regional disparities while contributing to industrial output and exports.
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