Maharashtra Textile Corporation Merger Plan Moves Toward Cabinet
The Maharashtra government has started the process of merging the Maharashtra State Textile Corporation, Maharashtra State Powerloom Corporation Ltd and Maharashtra State Handloom Corporation, with the proposal expected to be placed before the state Cabinet after financial reconciliation and approval from the Comptroller and Auditor General of India.
Mumbai | September 9, 2026
The proposed Maharashtra textile corporation merger is intended to improve administrative efficiency, reduce losses and lower operating expenditure across the three state-run bodies, Textiles Minister Sanjay Savkare said, according to a report by Loksatta. The process is currently being conducted at the level of the Comptroller and Auditor General of India, after which the proposal will be sent to the Finance Department and then submitted to the Cabinet for approval.
The move follows a recommendation by the Finance Department’s Public Sector Undertakings Committee that loss-making corporations should either be shut down or merged. The Textiles Department subsequently began preparing a merger proposal for the three corporations.
The Maharashtra State Handloom Corporation and the Maharashtra State Textile Corporation are currently loss-making, according to the report. The Powerloom Corporation has reduced its losses and improved its financial position to the extent that employee salaries are being paid regularly, the report said.
Under the proposed arrangement, the work of all three corporations would be brought together under one administrative structure. The merged entity would be headed by a single managing director, replacing the existing arrangement involving separate corporations. The government expects this to reduce administrative and other expenses and allow the organisations to function with their available workforce.
The proposal also focuses on personnel costs. The report said all employees in the textiles department have currently retired. The Handloom Corporation has a combination of permanent and contract workers. The government has not yet announced how staff positions, contracts or other employment arrangements would be handled after a merger.
The financial reconciliation of the three corporations is being carried out following directions from the Finance Department. The department had earlier received a proposal prepared by the Textiles Department. The reconciliation process is expected to establish the financial position and outstanding accounts of the corporations before the proposal advances through the approval process.
Savkare said the merger was being pursued because it would be administratively and financially convenient. The proposal will require Finance Department approval before it is placed before the Cabinet. Cabinet approval is therefore still pending, and the final structure, implementation schedule and operational arrangements have not yet been announced.
The next formal steps are completion of the financial reconciliation, approval by the Finance Department and submission of the merger proposal to the Maharashtra Cabinet.
