The Hindu Business Line : SC order raises revival hopes: NTC

THE Supreme Court's interim order staying the October 17 order of the Bombay High Court and permitting the developers, who bought the five National Textile Corporation mills in Mumbai, to submit their development plans to the authorities concerned for approval, has come as a breather for NTC.

"The latest order from the SC has in effect revived the May 11, 2005 order of the apex court which had permitted NTC to complete the transactions," the Chairman and Managing Director of the NTC holding company, Mr K. Ramachandran Pillai, said.

Mr Pillai, who was here to attend the board meeting of the NTC's Tamil Nadu unit, allayed fears that the litigation would derail NTC's revival plan for the other viable textile units."The current development involving the SC's interim order has given us the added confidence that we will be able to go ahead with the modernisation of the NTC mills as planned," Mr Pillai told Business Line.

The SC, acting on a batch of petitions from the textile mills including the NTC and other private mills such as the Bombay Dyeing and Manufacturing Company Ltd affected by the October order of the Bombay High Court, allowed the developers to go ahead with demolition of the buildings in the mills bought but restrained them from building any new constructions. The SC also stayed that portion of the High Court order that held that the sale of surplus land by the NTC was contrary to the BIFR scheme and against apex court order.

Revival and modernisation of units : Of the 52 textile units identified for revival, NTC is likely to take up only 15 units for immediate revamp and it has budgeted Rs 480 crore for the purpose.

NTC holding company, in consultations with the Ministry of Textiles, has identified the revival package for the viable units through a mix of own investment-cum-joint venture proposals. While 22 mills would be revived by NTC itself, another 29 would seek joint-venture projects for their revamp.

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