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Three-fold strategy drafted for NTC mills

Our Bureau

MUMBAI, June 2

THE Government has chalked out a three-pronged strategy for 119 National Textile Corporation (NTC) mills including voluntary retirement schemes, selling mill land and payment of compensation to mill workers, Mr. Kashiram Rana, Union Minister for Textiles , said here today.

He was speaking to newspersons after the export awards function of the Cotton Textile Export Promotion Council.

The units which can do well will be given financial help for technological upgradation, and for others, the Government plans to adopt the Gujarat pattern and voluntary retirement compensation between Rs. 70,000 and Rs. 1 lakh will be given. Negotiations with labour unions have already begun, Mr. Rana said.

``We have been paying Rs. 500 crores as idle wages every year and the cumulative losses of the textile industry have amounted to Rs. 5,000 crores this year,'' he said.

The Gujarat Government had earlier negotiated with the labour unions of 16 NTC mills in the State and had paid Rs. 230 crores as compensation.

An Estate Valuation Committee has been appointed as per the recommendations of the Board for Industrial and Financial Reconstruction (BIFR) for sick textile units. An amount of Rs. 3,300 crores has been set aside for the purpose, Mr. Rana said.

The Government is trying to ensure an increase in the amount disbursed as Technology Upgradation Fund (TUF) loans to textile units, said Mr. Rana.

The Minister said financial institutions such as IDBI and SIDBI had assured the Government that lending norms for TUF loans would be made milder.

The Government also plans to set up textile parks in Maharashtra, Gujarat, Tamil Nadu and Punjab. One such park has already been set up in Andhra Pradesh.

At the function, special gold trophies for highest global exports were given to Arvind Mills Ltd (for 1998-99) and Century Textiles & Industries Ltd (for 1997-98).

Pic.:Mr. D. S. Alva, Chairman, Texprocil, Mr. Kashiram Rana, Union Minister for Textiles, and Mr. Anil Kumar, Secretary (Textiles), at an awards presentation function held in Mumbai.