'Workers to gain from mill sell-off'

Defending the sale of land of the sick National Textile Corporation, the government today said several thousands of people would get assured employment after modernisation of potentially viable mills out of the sale proceeds.

In his statement to the calling attention notice moved by V Narayanswamy, Textiles Minister Shankersinh Vaghela said government was committed to carry out the capital restructuring of NTC, costing nearly Rs 6,000 crore.

Stating that government had taken decisive and effective steps for saving the NTC, a sick company, from liquidation, Vaghela said owing to the Centre's initiative, the Board for Industrial and Financial Reconstruction (BIFR) had also approved rehabilitation schemes for the NTC companies, costing about Rs 3,900 crore.

As per the rehabilitation scheme, 66 unviable mills were to be closed and 53 potentially viable mills were to be revived with the sale proceeds of surplus assets.

"After un-encumbering the assets, the NTC started the process of land sale through an open and transparent mechanism," the minister said, adding, the sale process, however, had been affected owing to delays in permission by state governments like Maharashtra, Gujarat, Madhya Pradesh and UP.

The minister said bulk of resources for rehabilitation are to be generated through the sale of NTC land in Mumbai. The Maharashtra government had amended development control regulations for greater Mumbai, which facilitated the sale of the NTC mill land in the megapolis for the development of crucial civil infrastructure, he added.

Vaghela also said out of the 25 NTC mills in Mumbai, 39.42 acres of surplus land would be handed over to the Maharashtra Housing Development Authority and the Brihanmumbai Muncipal Corporation (BMC).

While five NTC mills had no surplus land, there was 137.04 acrer of surplus land with the remaining 15 mills in Mumbai.

NTC had concluded the sale of five properties for Rs 2,021 crore and the money from this would be used to return the amount borrowed from the market, to fund voluntary retirement schemes in NTC mills and also to meet the cost of modernisation, he added.

Apart from this, NTC had advanced amounts for meeting cash losses which also need to be reimbursed, he said.

The minister also said in accordance with the scheme finalised by the BIFR, the NTC, on May 2003, filed an application before the commissioner, BMC, the competent authority on regulations governing the sale of textile malls land. Vaghela said instead of giving permission for sale of land, the BMC constituted a sub-committee to advise in the matter. The sub-committee, in its report, suggested further modification in the development control regulations.

The Maharashtra government had, however, not acted upon the recommendations for further modification of the development control regulations, the minister said.

Tracing the history of developments which led to the conclusion of sale deals of NTC mill land, Vaghela said after vigorous persuasions, the Maharashtra government had permitted the sale of 47.69 acres in five mills in the first phase.

The five mills included Jupiter, Mumbai, Kohinoor 3, Apollo and Elphinstone.

Meanwhile, an environmental action group in Mumbai filed a writ petition in the Bombay High Court against the sale of NTC land following which, the an interim stay was granted on the sale in April 2005.

When the NTC contested the order in the Supreme court, the apex court vacated the stay orders and permitted NTC to go ahead with the sale of land, the minister said.

On the direct and indirect socio economic impact of the sale of mill lands, he said this would provide thousands of people arsured employment after modernisation of potentially viable mills.

He said due to closure of unviable sick mills and revival of potentially viable mills, burden on state exchequer for payment of statutory dues would be minimised.

The mill land in the heart of the city lying unused will be better utilised for development of crucial civil infrastructure, vaghela said, adding development activities on these lands wouhd create additional employment opportunities for many people.

vaghela said out of 25 ntc mills in mulbai, 39.42 acres of surplus landwath five ntc mills would be handed over to maharashtra housing development authority and brihanmumbai muncipal corporation (bmc).

While five ntc mills had no surplus land, there was 137.04 acrer of surplus land with remaining 15 mills in mumbai.

Vaghela said ntc has concluded sale of 5 properties for rs 2021 cbore and the money from this would be used to return the amount borrowe`from the market to fund voluntary retirement scheme in ntc mills and also to meet the cost of modernisation.

Apart from this, ntc has advanced amounts for meeting cash losses which also need to be reimbursed, he said.

The minister said in accordance with the scheme finalised by bifr, the ntc, on may 2003, filed application before the commissioner, bmc, who is the competent authority on regulations governing the sale of textile malls land.

Vaghela said instead of giving permission for sale of land, the bmc constituted a sub-committee to advise in the matter.

The government of maharashtra has, however, not acted upon the recommendations for further modification of the development control regulations, the minister said.