Mumbai textile mills settle Rs 4500 crore dues

Various mill owners, including the National Textile Corporation, which owns 25 of the 41 textile mills in the city, have paid off dues totalling Rs 4,500 crore. The move will facilitate the development of mill lands in the city.

Of the Rs 4,500 crore dues, Rs 1,500 crore was cleared under the Development Control Regulation (DCR) 58 of March 2001, while Rs 3,000 crore was deposited in an escrow account towards repayment of loans to banks, salaries and voluntary retirement dues.

A spokesperson of the Mill Owners' Association said, 41 mills have deposited money in an escrow account to ensure that payments to financial institutions (FIs), banks and workers were made before the mill redevelopment plans were implemented.

Thus far, only three mills in the city, Morarjee Mills, Simplex Mills and Standard Mills, have settled their dues entirely.

NTC, which recovered Rs 2,000 crore from the sale of four mills, has paid Rs 643.94 crore towards VRS to 14,800 workers and Rs 118 crore towards salaries. NTC has earmarked Rs 1,423 crore for modernisation of seven mills. It is yet to make payments towards interest bearing bond which was raised to pay off liabilities of Rs 1,779 crore.

Bomaby Dyeing, which has two mills in the city, has paid Rs 120 crore towards VRS for 3,127 workers, and has committed Rs 50 crore for the same purpose. It also owes Rs 347 crore to banks and FIs.

Ruby Mills, having one operating unit, paid Rs 4.95 crore towards VRS, while it has still to pay Rs 39 crore to banks and FIs. The company has earmarked Rs 60 crore for establishing a new processing unit.

Hindootsan Spinning and Weaving Mills, with four units in operation, has outstandings of Rs 112 crore towards workers' dues, and has committed to pay Rs 90 crore through post-dated cheques towards other outstandings.

Nine other mills, Dawn, Piramal, Mafatlal, Modern, Standard, Matulya, Morarjee, Swan and Simplex, have together paid Rs 447.95 crore towards workers dues and further committed to pay Rs 1,900 crore to FIs and banks.

The story thus far

Only three mills , Morarjee Mills, Simplex Mills and Standard Mills, have settled their dues entirely

NTC has paid Rs 643.94 crore towards VRS and Rs 118 crore towards salaries. NTC has earmarked Rs 1,423 crore for modernisation of seven mills

Bomaby Dyeing has paid Rs 120 crore towards VRS and has committed Rs 50 crore for the same purpose

Ruby Mills has paid Rs 4.95 crore towards VRS. The company has earmarked Rs 60 crore for establishing a new processing unit

Hindootsan Spinning and Weaving Mills has outstandings to the tune of Rs 112 crore towards workers' dues, and has committed to pay Rs 90 crore towards other outstandings

Nine other mills, Dawn, Piramal, Mafatlal, Modern, Standard, Matulya, Morarjee, Swan and Simplex, have together paid Rs 447.95 crore towards workers dues