Bhubaneswar: In a major move to boost industrialisation in western Odisha, the State Cabinet on Wednesday approved a proposal by Shree Ambica Cotspin Pvt Ltd to set up a modern yarn manufacturing unit in Balangir district.
The proposed spinning unit, with an investment of Rs 124 crore, aims to strengthen the textile value chain in the state, particularly in the KBK (Kalahandi-Balangir-Koraput) region and other Aspirational Districts that have lagged in industrial development.
The project will focus on forward integration of the cotton value chain by converting raw cotton into yarn, addressing a long-standing gap in Odisha’s
textile ecosystem, Chief Secretary Anu Garg told reporters after the Cabinet meeting.
Despite a steady rise in cotton cultivation, the state has lacked adequate downstream processing infrastructure, leading to limited local value addition.
Shree Ambica Cotspin, an Odisha-based company with over 27 years of experience in the textile sector, plans to leverage advanced spinning technology to retain more value within the state and support the development of a “farm-to-fabric” ecosystem.
The project is expected to generate direct employment for around 300 people, offering a boost to livelihoods in Bolangir and nearby areas, where industrial opportunities have remained limited. The initiative is also set to improve the competitiveness of the region’s textile sector by enabling the development of a local spinning and weaving ecosystem, reducing dependence on other states for yarn supply.
The project is also expected to attract ancillary investments, creating a multiplier effect on economic activity across western Odisha.