Financial Daily from THE HINDU group of publications
Tuesday, Jul 23, 2002
Industry & Economy
Central Govt bodies eye surplus NTC mill land
COIMBATORE, July 22
WITH the National Textile Corporation's (NTC) Tamil Nadu subsidiary stepping up its efforts on sale of assets, a few Central Government organisations have expressed willingness to buy the surplus land offered by the NTC.
The willing Central Government bodies are the Bharat Sanchar Nigam Ltd, Central Excise Department, Survey of India and the Employees State Insurance Corporation.
Of these, the land sale proposal offered to the Bharat Sanchar Nigam Ltd (BSNL), which has agreed to buy 25 cents of land offered by one of the NTC textile units in Coimbatore, is said to be almost through.
The BSNL whose proposal was cleared by the Asset Sale Committee (ASC) of the NTC subisidiary in its sitting last week-end is expected to conclude the deal by next month and take over the land from the NTC, highly reliable NTC sources told Business Line.
Though it is not immediately known on the sale consideration settled by the BSNL and NTC for the 25 cents, the sale is based on the Government guideline value, the sources say. The ASC of the NTC in its last meeting, which discussed the proposals received from other Government departments, had decided to pursue them.
In addition, the Tamil Nadu Police is also said have evinced interest to buy the NTC land in Coimbatore.
Government organisations seem to be interested in surplus lands available for sale in the NTC's Pankaja Mills and the Rangavillas Mill, situated in prime locality in the city.
The TN NTC has also proposed to sell 2.6 acres of land it owns in Madurai as part its asset sale programme.
The sources said the NTC subsidiary, which has preferred to sell its land property to Government bodies, has also offered to sell the land for the Coimbatore railway and has written to the Railway Board quoting its offer.
NTC feels the land available in two of its textile units in the city slated for disinvestment Somasundara Mills and the Kaleeswara `A', situated contiguous to the Coimbatore railway junction would come in handy for the railway for expansion activities.
NTC would be in a position to offer 23 acres of land from these two units to the Railway authorities.
The NTC's Tamil Nadu and Pondicherry subsidiary, which has 10 of its 15 textile units located in Coimbatore alone, has about 73 acres of land (both surplus lands from its viable units and the total lands available in the units intended for closure and sale), which would be earmarked for sale.
The projected value of these 73 acres is said to be around Rs 109 crore or so.
The subsidiary as such would have close to 90 acres of land in total for sale.
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