chapter viii wool & wollen textiles industry - Ministry of Textiles

ministry of textiles
envisaged closure of 66 unviable mills
and revival of 53 viable mills. NTC has so
far closed 78 mills. As on 1 st December,
2011, 62,747 employees have gone
under MVRS from April, 2002 onwards
and it has paid Rs. 2330 crores by way of
compensation to these employees. NTC
has reduced the manpower from 90,000
to about 8000 employees. It has also
closed 193 unviable showrooms of the
Retail Marketing Division.
The Company has completed
modernization of 17 old mills as
on 31.03.2009 and the 18 th mills’
modernization was completed during
the year 2009-10. Three mills, viz.,
Ahmedabad (Gujarat); Achalpur
(Maharashtra); and Hassan (Karnataka),
are relocated projects which are at
different stages of completion. 2 mills
are subsequent additions under MS-08,
thus, making the total 23. The 24 th mill
is proposed as a Technical Textile Unit.
ISO 9001-2008 certifications have been
awarded to 15 textile mills of NTC.
NTC will be focusing effectively on
branding and retailing of its fabrics
through Retail Marketing Division and
increase its volume of institutional sales in
the coming days. Technical Textiles is an
area where there is a tremendous scope
for the company to improve its turnover
and profitability.
The entire funds required for payment
of MVRS compensation was mobilized
by private placement of bonds from the
market to the extent of Rs. 2028 crores.
The Company has already paid on time
Rs. 2028 crores on redemption of bonds
and Rs. 883 crores as interest on these
bonds, in addition to paying Rs. 294
crores as one-time settlement to banks
and financial institutions. The entire
funds required for the implementation
of the Revival Scheme is generated
through sale of assets of the closed
mills and surplus assets of the viable
mills. NTC has so far generated Rs.
6629 crores by sale of assets by an
Asset Sale Committee, constituted by
BIFR/MOT.
The Company has plans to transform
itself into an integrated textile company
with spinning, weaving, processing,
garmenting, besides diversifying into
technical textiles.
While the Company has been enjoying
the benefit of budgetary support from its
inception, there is no budgetary support
for its wages from the year 2009-10.
The Company has a very effective Board
of Directors with 11 members – 4 of whom
are independent Directors; 1 Special
Director from BIFR; besides 2 nominee
Directors from the Ministry of Textiles.
The first ever e-auction in the history
of Indian CPSU was conducted by the
Company during July/August, 2010.
= The first ever e-auction was
conducted from 29 to 31 July, 2010,
for the sale of its 2.39 acres of land
of Podar Mills (Process House) and
fetched Rs. 474 crores which was
higher than the reserve price of Rs.
250 crores.
= This was followed by another
e-auction of 8.37 acres of land of
Bharat Textile Mills from 4 to 6 August,
2010. The price of Rs. 1505 crores,
against the reserve price of Rs. 750
crores, was the biggest deal for NTC
for any single property so far it sold
under the Revival Scheme.
= The Company has bagged Rs. 118.40
crores against the reserve price of Rs.
41.27 crores by sale of 8.21 acres of
plot of New Manekchowk Textile Mills,
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