Patacharkuchi, April 9: The once profit-spinning Assam Syntex Limited is poised for a new lease of life after floundering for nearly nine years. The state government has decided to hand it over to a private company.

The Guwahati-based Advent Industries Limited has agreed to take over the sick unit on lease, fuelling hopes that the once popular polyester yarn would start rolling out of its mills again.

For the over-500 mill workers, the government’s move has come as a blessing.

The company, a subsidiary unit of the Assam Industrial Development Corporation, is situated at Nathkuchi in Lower Assam’s Nalbari district.

Its functioning was paralysed nine years ago when electricity to the mill was snapped due to non-payment of dues.

Workers were forced to leave the mill and look for other jobs. Their hardship had begun with the management declaring that it could not afford to pay salaries.

Set up in 1982, the mill produced polyester-blended yarns with an installed capacity of 17,280 spindles from 1986-87 at an estimated cost of Rs 996 lakh.

The mill heralded high hopes for the people of Nalbari district as over 500 people were employed in technical and non-technical jobs of the factory.

After performing well initially, declining production, coupled with mismanagement sounded the death knell for the company.

Its workers left the mill to take to cultivation and even menial jobs.

Despite repeated assurances from the government, the mill remained non-functional.

The government then scouted for potential firms to lease it out.

Advent Industries finally signed a memorandum of understanding with the state government, agreeing to revive the sick unit. It also struck a deal with the workers’ union on service conditions. In the first phase of its revival, the company will run the mill for seven years at an annual rent of Rs 18 lakh.

However, there is a rider: the government has to hand over the mill in proper condition.

While the private company is ready for the takeover, the process of transfer has been delayed as the state government is yet to make the mill functional.

Official sources said the overhauling would take some time. Advent Industries has ordered the workers to report at the mill with copies of their appointment letters.

A worker who was on supervision duty said dozens of technical workers are currently engaged in readying the machines but without pay.