Govt nod for lay off of workmen in AFT mill for 6 more months

: The government run Anglo French Textiles (AFT) here has been permitted to lay off workmen in A, B and C units (except the spinning unit) in the for a further six month period from July 21.
A July 15 Government Order (published in the current issue of State Gazette) by Labour Secretary R Mihir Vardhan granting permission for it, said government had perused the AFT management's application and also supporting documents.
The order also referred to 'various reasons' cited by the management while seeking permission for extension of lay off.
The management had stated that A unit had suffered severe structural damage in the Thane cyclone and buildings were then declared unsafe for use by Inspector of Factories. Orders were issued prohibiting entry of workers in the campus which included the engineering department.Operations in these wings were consequently discontinued operations in these wings.

It was also pointed out that AFT's net worth had already been in the negative side as on March 31, 2014 and that there were no funds available even to meet the day to day expenses.
Government had released Rs 367.35 crore upto May 15 this year as its share capital and Rs 201.11 crore as grant in aid.

The mill operated by the Puducherry Textile Corporation had earned marginal profits from 1985-86 to 1992-93. It started incurring loss thereafter.
The share capital and grant in aid released by government had also 'drastically declined' in the last six years and the latter amount released now was enough only to pay the layoff compensation and wages and not to run the mill fully,AFT said.

The machinery was very old and without modernisation, it was difficult to operate the mill effectively. AFT was not in a position to adopt any action plan to operate it without settling statutory dues to workers. Banks, government and other institutions are not granting loans to it to settle the statutory and non statutory dues amounting to 130.02 crore.
Under the circumstances AFT management proposed to sell the 54.64 acre site belonging to it in Pattanur village in neighbouring Villupuram district of Tamil Nadu.
The proposal had been approved by government and had been sent to the Home Ministry for clearance.

AFT said if sanction was got from the centre,e-auction of the site could fetch around Rs 80 crore as per present market value, enabling it to settle the dues to workers.
Steps could then be taken to revive AFT. Till such time there was no other alternative than to declare a temporary layoff, the management contended.