The textile ministry has decided to extend full protection labour interests while implementing its voluntary retirement schemes(VRS) for the National Textile Corporation units.
The VRS package, based on the one implemented in Gujarat will consider the number of working years employees are left with, linked to a deferred payment scheme since it is not possible to pay the employees cash upfront, which will amount to Rs 1,700 crores.
Shyamal Ghosh, secretary of textile ministry said, "the VRS payouts will also be linked to sale of surplus land."
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The ministry, which conducted a techno-viability study of the NTC units, feels that between 30 to 34 units of the 119 NTC units can be operational.
The textile ministry is also working on a number of schemes under its technology upgradation programme in order to make the Indian textile sector globally competitive.
The ministry has decided to extend 5 per cent interest support to textile companies opting for technological upgradation. This will be through financial institutions.
The idea is to provide a level playing field with the interest rate at around 8 per cent, considering the 5 per cent support on current 13 per cent prime lending rate.
Most developed countries enjoy a technological edge over India in the textile sector and even China has initiated a massive programme to upgrade its textile technology, necessitating a similar move in India to keep up with global competition. India currently has a 25 per cent global marketshare in yarn