NTC plans to raise Rs 4000crs from textile mills selloff
07 Sep '05
2 min read
The National Textile Corporation will selloff 65 closed textile mills to raise Rs 4000 crores.
According to sources, the said amount will fund part of a plan drawn up by the Board for Industrial Finance & Reconstruction under which expression of interests have been sought for about 30 mills.
Under the plan put in operation NTC could garner Rs 3,000 crore through disposal of its assets in the loss-making units.
The money raised would pay debts and fund a voluntary retirement scheme.
Chairman and Managing Director K R Pillai said, “We have settled outstanding dues of more than Rs 2,000 crore, including Rs 1,600 crore for VRS of the employees of the closed units,” he said.
While about 47,000 employees have already taken VRS, another 15,000 will proceed within the next three months with the company employees strength at 27,000, at present.
Besides closing down 65 mills and reviving 30 under joint ventures, the company will upgrade 22 units. Two mills have been handed over to the Pondichery government this year.
Pillai added, “According to our Techno Economic Viability Study, we need Rs 550 crore to complete modernisation of 22 units."
He also informed that out of 282 showrooms across the country, 134 would close down under the overall downsizing policy of the company.
Also merger of all nine subsidiary NTC units with parent company has been recommended to the BIFR for approval, indicated Pillai.
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