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Improved VRS package for jute sector

Our Bureau

CALCUTTA, June 18

THE Union Textiles Ministry has decided to ``substantially augment'' a voluntary retirement package drawn up earlier for the employees of National Jute Manufactures' Corporation Ltd (NJMC), an ailing PSU having six mills.

The Textiles Secretary, Mr. Anil Kumar, told Business Line here that under the new proposal each employee would get ``more than Rs. 2 lakhs''. Under the earlier package proposed by the Centre, an employee opting for VRS was to get between Rs. 1 lakh and Rs. 1.5 lakhs.

``The new VR package has been prepared following the ``Gujarat model'' under, which cotton textile workers of PSUs were given the golden handshake. This package would form a part of NJMC's rehabilitation plan to be placed before the Board for Industrial and Financial Reconstruction soon'', Mr. Kumar said.

The corporation has a total of 19,000 mill workers, 600 officers and 240 office staff. Its unaudited balance sheet for 1998-99 (which has been finalised recently and would be taken on record by its board shortly) shows an accumulated cash loss of Rs. 1,2 57 crores since 1980-81.

The Centre was not considering a ``sell off'' plan. However, the possibility of closing down certain operations was not ruled out, Mr. Kumar said.

Out of six mills of NJMC, five are located in West Bengal and one is in Bihar. Though all the mills are at present in operation, they are highly under-utilised.

According to Mr. Braja Mahapatra, Chairman-cum-Managing Director of NJMC, the rehabilitation package envisages conversion of the Government loan of around Rs. 940 crores into equity, writing off penal interests by banks and infusion of Rs. 281 crores by the Industrial Investment Bank of India, the operating agency, for funding start-up expenses and working capital.

Mr. Mahapatra said the management was now attempting to cut expenses and increase productivity. In the last three months, productivity had improved by about 15 per cent and expenditure educed by Rs. 30 lakhs per month, while 2,000 employees had retired.