UP allows sick PSU to dispose of surplus land

For the revival of Kanpur-based ailing British India Corporation's textile mills, better known for brands like Lal Imli and Dhariwal, the UP government has allowed the central PSU to dispose of surplus land.

The government has also permitted the PSU to convert its land into freehold property. The permission is, however, subject to the condition that the proceeds would be utilised only for reviving the closed textile mills in Kanpur.

Official sources here said if the BIC management is interested in revival of the unit then the state government will allow the PSU to convert over 6,00,000 sq metres of prime land into freehold land. The case of the BIC was reviewed by the state's chief secretary, N C Bajpai.

Official sources said the district authorities in Kanpur have been directed to expedite the process of conversion of BIC land into freehold land, provided the management gives firm commitment for the revival of the sick unit. Sources added that the price of the freehold land will be determined as per the circle rate announced by district magistrate, Kanpur.

A senior official of the industries department said the state government would give all possible assistance for the revival of all closed textile mills and other sick industrial units in the state, provided the managements of the concerned units were genuinely interested in revival of the ailing units.

It may, however, be pointed out that the single biggest problem before the BIC and the National Textile Corporation in Kanpur was getting back the land under the possession of local land mafia.

The NTC owns eight mills in Kanpur that it acquired in 1980s, during the heydays of socialism. Even as the revival plans of the NTC and the BIC are afoot, the corporation's officials are finding it hard to get back their piece of land.

The local mafia in connivance with the Kanpur Development Authority and district revenue officials have encroached upon vast tracts of lands of the NTC and BIC in Kanpur.

A large number of private and commercial institutions, including schools, colleges, restaurants, motor workshops, have come up on most of the prime properties of the NTC and the BIC. According an estimate, NTC's Rs 800 crore worth of property is under encroachment.

The NTC had taken up the matter with the UP government and had also written to the chief minister. It had complained against KDA officials for their various malpractices.

The NTC charged KDA officials of having approved illegal maps and subsequently allowed constructions by unauthorised people on the land owned by Laxmi Ratan Cotton Mill, Kalpi Road. The mill was taken over by the government of India through an ordinance in 1976.