Auction of historic Sirsilk factory land shatters revival hopes in Kagaznagar
The auctioning of 48.23 acres of land belonging to the historic Sirsilk factory in Kagaznagar has dashed hopes of its revival. Once a thriving silk manufacturing unit established by the Nizam in 1939, the factory faced repeated closures due to financial losses.
Adilabad: Hopes of people and workers have been dashed with the process of auctioning lands belonging to the 86-year-old Nizam-era Sirsilk factory in Kagaznagar town commencing on Saturday.
The silk cloth manufacturing unit was established on the outskirts of Kagaznagar town by the then Nizam government creating employment opportunities for 3,745 workers from several parts of erstwhile Andhra Pradesh in 1939. It was known for producing fine quality artificial silk and exported to domestic and international markets. The arrival of the factory helped the town to gain prominence on the State’s industrial map.
The management of the factory was transferred to the Birla Group in 1952. It slipped into red due to losses in 1984, resulting in the lay-off of 50 percent of workers. The factory was locked down due to the financial crisis when the State government stopped supply of raw material such as cotton, coal and alcohol at subsidized rates in 1985.
The factory was revived following a protest by workers in 1994. It was, however, closed due to losses in 1995, disrupting the livelihoods of workers. The workers were left with no option but to venture into various fields and migrate elsewhere. Some of them ended their lives as they were overwhelmed by financial distress.
Subsequently, candidates of various political parties promised to reopen the sick factory to provide jobs to locals and restore the town’s industrial legacy if they were voted to power. The revival remained elusive for the workers. The workers have continued to reside around the factory, expecting a revival someday.
Meanwhile, bids were invited by an official liquidator for purchasing 48.23 acres of the land owned by the factory. The lands are going to be e-auctioned on November 20. Senior workers opined the auctioning of the lands might be the final blow to revival hopes. They said that the chances of reopening one of the oldest silk manufacturers of the country were bleak.
