The Kanpur-based company, burdened with huge liabilities, closed down its mill in September after an acute shortage of working capital, and there are no signs of a reopening.

An industry source said that none of its major shareholders are interested in the company. "NTC, which holds the largest stake of 34 per cent, is already burdened with its own problems and has neither any interest nor intention of reopening the mill. And with a dull market, the Swarups are not too eager either to take control of it," he said.

Last January, NTC and the Swarups were engaged in a bitter struggle over control of the company. Paharpur wanted to induct three additional directors on the board and NTC failed to install its nominee as the chairman and managing director.

Later, the board was reconstituted and now thereare 11 non-executive directors, of which four are nominated by Paharpur, five by NTC and two by the financial institutions. The chairman is KK Mishra but there is no managing director.

Paharpur's director Gaurav Swarup told The Financial Express that the matter was settled in July this year. "NTC was running the unit, and they failed miserably. In September, the mill was closed down," he said.

However, the Swarups, who hold around 29 per cent along with their associates, are not interested in taking over the company because of its huge liabilities.

"Just to restart the unit we have to pump in at least Rs 15 crore. Moreover, there are huge liabilities to the tune of Rs 10 crore, which includes the electricity dues of Rs 3 crore and also that of the employees," Swarup added.

He said there is not much of attraction in taking over the unit as the industry itself is in doldrums. "There is no point in taking over the unit now, along with its huge liabilities," Swarup mentioned.

The source said thatNTC is also in no position to infuse funds for the revival of Swadeshi Polytex.

"NTC is going through a bad phase and it hardly has any money to run its own units. The company is waiting for the revival package, which is likely to be announced by the union ministry of textiles," he added.

However, this revival package will not include Swadeshi Polytex, as it is a private sector unit. Apart from NTC and the Swarups, financial institutions hold 15.49 per cent and the public hold 27 per cent.

Swadeshi Polytex, which has around 600 on its rolls, has an equity base of Rs 3.9 crore. NTC got its stake in the company in 1988 without paying a rupee, when the mill -- then known as Swadeshi Cotton Mills -- was nationalised after a Supreme Court order.