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G. Gurumurthy

Coimbatore , June 28

WITH fortune smiling on the ailing National Textile Corporation's (NTC) current land sale bids, the public sector textile conglomerate is turning its attention to its `single-structure' reorganisation of its mills that aims at pruning the number of its viable textile units to 52.

Its current tranche of land sale poised to fill NTC's coffers with more than what it would have anticipated a few months back, the NTC national holding company has sent a modified proposal to the BIFR before which the individual restructuring proposals of all the nine NTC subsidiaries are pending.

Speaking to Business Line, Mr Ramachandran Pillai, Chairman and Managing Director of NTC holding company, said: "With both the Centre and the board for Restructuring Public Sector Companies (BRPSC) already clearing NTC's proposal to merge all nine subsidiaries and the holding company into a single company, the NTC administration is now awaiting BIFR's formal nod for the new restructuring proposal. Once it is approved, we will be able to run all the 52 viable textile units under the management of single board of company."

Mr Pillai said that of the 52 units slated for revamp, NTC would take up immediate modernisation of 22 units while 18 would be revived through joint venture with private sector.

In the latter case, NTC's equity will be limited to land and machinery only; it will not take part in management.

The NTC modernisation scheme, which entails an estimated outlay of Rs 4,000 crore, hinges heavily on the asset sale-cum-revamp package, since bulk of the funds needed are to be met by the proceeds from the asset sale.

In anticipation of the asset sale, NTC has already spent Rs 3,475 crore including Rs 2,000 crore mobilised from bonds issued to FIs.

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