No plan to revive 77 textile mills closed by NTC: Maran


Company Secretary and Compliance Officer

Friday 11 December, 2009.


No plan to revive 77 textile mills closed by NTC: Maran

Government said it did not intend to revive 77 loss making textile mills which have been closed down by National Textile Corporation (NTC) and was examining viability of selling their land to generate resources for the industry.

 

Minister of Textiles Dayanidhi Maran informed the Lok Sabha that 77 unviable mills have been closed down by NTC under the Industrial Disputes Act in keeping with the Revival Scheme approved by the Board for Industrial and Financial Reconstruction (BIFR).

 

60,859 employees, including 43,914 from the 77 closed mills, had opted to leave NTC under the Modified Voluntary Retirement Scheme (MVRS) which involved a total compensation of Rs 2206.05 Crores, he said.

 

Maran said government "in its wisdom" decided to close down these mills as they were making losses and were unable to pay salaries to their employees.

 

The minister said the mandate of the government was to sell land on which the mills were located and NTC was engaged in the process.

 

He said 22 other mills were being modernised. He accepted that 16 Joint Ventures could not take off and the government was looking into the reasons and trying to find other solutions to revive them.

 

In reply to another question on cotton crop, Maran said government expected 290 lakh bales this year and was in possession of 340 lakh bales overall which he said was enough.

 
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