The Hindu Business Line : Mumbai millowners clear Rs 1,500-cr debts

According to a Mill Owners' Association (MOA) press release, there are arrears of Rs 3,000 crore due towards salaries, VRS dues, repayment of loans to banks and other statutory payments being deposited into an escrow account.

Under the modified Development Control Regulations, development of mills or property can only commence once the dues are repaid to workers and other financial institutions. The funds should be deposited into an escrow account from which it will be disbursed.

A total of 41 textile mills, including mills run by National Textile Corporation (NTC), have deposited the remaining amounts into the escrow to ensure that all dues relating to workers, FIs, banks and other creditors are settled before redevelopment plans are implemented.

According to the MOA statement, NTC paid Rs 643.94 crore towards VRS to 14,800 workers. Salaries account for Rs 118 crore and interest bearing bonds raised to pay liabilities in the tune of Rs 1,779 crore will now be repaid. NTC also earmarked Rs 1,423 crore for modernisation of seven mills.

The Bombay Dyeing & Manufacturing Company Ltd, which has two mills, has paid Rs 120 crore towards VRS to 3,127 workers and has committed to pay Rs 50 crore towards settling its VRS due to workers.

In addition, the company will pay Rs 347 crore owed to banks and FIs. It has already paid MIDC Rs 19 crore for the land it has acquired for new textile mill to enhance capacity.

Ruby Mill, which has a single operating unit, has paid a total of Rs 4.95 crore towards VRS to its workers. In addition, it has other liabilities to banks & financial institutions to the tune of Rs 39 crore, interest bearing bank loans, already sanctioned, of Rs 19 crore with Rs 60 crore earmarked towards establishing a new processing unit.

Hindoostan Spinning & Weaving Mills Ltd has 4 units in Mumbai has an outstanding amount of Rs 112 crore towards workers dues. It has paid Rs 50 crore and another 40 crore vide post dated cheques towards the same.

Nine other private mills, which include Mafatlal, Piramal, Modern, Dawn, Standard, Matulya, Morarjee, Swan and Simplex, together have paid Rs 447.95 crore towards workers' dues and have commitments to pay over Rs 1,900 crore to FIs and banks and further VRS and modernisation.

The statement added that the modified DCR 58 ensured measures to safeguard workers' interests by allowing mills to repay their debts and modernise their mills.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page