Economy

NTC Mills: Centre to explore various options including closure, sale or part-disinvestment

Amiti Sen | | Updated on: May 19, 2022

Committee led by NITI Aayog to frame plan based on inputs from DPE, Textiles Ministry

The Centre has constituted a committee to examine various options regarding the unviable textile mills under the public sector National Textiles Corporation, , a source tracking the matter has said.

“A committee has been formed under the NITI Aayog to propose a plan for the NTC mills that have proved to be unviable despite attempts by the government to revive them. All options will be explored including their closure and sale, their disinvestment on a ‘as-is-where-is’ basis or disinvestment of some select mills while closure and sale of the others,” the source said.

The Department of Public Enterprises (DPE) and the Textile Ministry will give their inputs to the committee, the source added.

“Earlier, some attempts were made to make investments, and technically upgrade some of the mills to put them back on their feet. But it is clear now that NTC can’t run these mills. That is for sure. The government doesn’t want to put any more money into it,” he said .

In March this year, Minister of State for Textiles Darshana Jardosh, in a written reply in Rajya Sabha stated that production in 23 working mills of NTC was suspended due to Covid-19 pandemic and nationwide lockdown imposed by the various States from March, 2020. “From January, 2021 onwards, normal operations were resumed in some of the NTC mills but could not be continued due to unavailability of working capital and other financial constraints,” she had said.

In light of continued poor economic viability of NTC mills, Ministry of Textiles is preparing an action plan for way forward in this matter in consultation with NITI Aayog and Department of Public Enterprises under Ministry of Finance, the Minsiter added.

“In order to protect the interest and welfare of employees, they are being paid wages and statutory dues as per mutual agreement between management and representing workers of the mill,” the Minister said.

There are over 6,900 workers at the 23 working mills of the NTC per figures provided by the Textiles Ministry.

Trade Unions representing the mill workers have earlier proposed that the land sitting idle with the mills could be monetised to plough in resources to revive the mills.

“Whatever the NITI Aayog committee decides will be placed before the Union Cabinet for its consideration. A final call will have to be taken by the Cabinet,” the source said.

Published on May 19, 2022
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