Appointment of liquidator for 11 defunct spinning mills

Lucknow, Aug 11 (UNI) After the Bombay High Court ordered the state government to appoint official liquidator to assess the liquidation of 11 spinning mills in UP, the state government today approved the HC verdict.

The state cabinet approved the appointment of an official liquidator as directed by the Bombay HC.

State chief secretary Naveen Chandra Bajpai said here terms and condition of the liquidation under the cooperative sector would be decided by the liquidator with HC approval.

The 11 spinning mills have a total liability of Rs 438 crore and all defunct at present. These are situated in Fatehpur, Bahadurganj, Allahabad, Amroha, Baheri, Bullandshaahr, Mohammadabad, Etawah, Magahar, Nagina and Bareilly.

In another decision, the government extended the second transfer scheme (on option) for employees and officials of the UP Power Corporation Ltd and its subsidiaries till April 11, 2007, which will benefit over 40,000 employees.

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