National Textile Corporation (NTC) has revealed plans to introduce special purpose vehicle (SPV) for 18 ailing mills.
The public sector undertaking (PSU) will invite joint ventures (JV) from private companies, so as to generate capital for upgrading and revamping the factories.
NTC Chairman and Managing Director, K Ramachandran Pillai, explained the scheme, saying, “According to the terms of the SPV, NTC will have 51 percent of the SPV's share capital while the balance would be with the private company.”
He further informed, “We will have only 40 mills with us, of which 18 will be with the SPV. We wish to close down another 12 mills as it has been found that there is no scope of a turnaround there.”
NTC will transfer but not strip assets to SPV and the laborers will be offered VRS.
The total workforce of the mills comes upto around 9000.
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