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Export order for hessian sackings -- MMTC seeks tripartite meet following rebuff by NJMC

Ambarish Mukherjee

NEW DELHI, July 14

THE cash-rich Minerals and Metals Trading Corporation (MMTC) has been refused tender documents by the ailing National Jute Manufacturing Corporation (NJMC) which is currently with the BIFR.

Following the refusal, MMTC has approached the Ministry of Textiles to organise a tripartite meeting between NJMC, MMTC and the Ministry.

Since MMTC bagged a substantial order for exporting hessian and sackings, it wanted to get the job done by three mills under NJMC -- National Jute Mill, Kinnission Jute Mill and Kharda Jute Mill. MMTC's plan was to provide raw jute to the three NJMC mill s which, in turn, would convert them into hessian and sackings for sale to its overseas buyers.

When NJMC came out with an advertisement seeking such conversion jobs, MMTC not only expressed interest but its officials approached NJMC for talks. But nothing concrete emerged from the discussions.

NJMC refused to provide MMTC with any information about procedural details, modus operandi and related issues during the oral discussions, an official said.

A senior NJMC official told Business Line, on conditions of anonymity, that plans are being worked out within the company to undertake conversion works for two private sector jute mills -- Kamarhatty Jute Mill owned by the Aggarwals and Kelvin Jute Mills owned by the Nathanis and so the company is sitting tight on the MMTC offer.

Kamarhatty Jute Mill is currently with the BIFR and Kelvin Jute Mill under lock-out. Fed up with NJMC's stubbornness and after getting hints about its plans to prefer sick private companies over the profitable public sector outfit, MMTC has sought the in tervention of the Ministry of Textiles, the administrative Ministry for NJMC.

The MMTC Director, Mr B.B.L. Madhukar, in a letter dated June 25, 2001, to the Textiles Secretary, a copy of which is available with Business Line, has said that ``the officials from our Calcutta office were in touch with the officials of NJMC but nothin g concrete could emerge from their discussions. Meanwhile, NJMC issued advertisements calling for offers in respect of National, Kinnission and Kharda jute mills and accordingly MMTC conveyed its interest in-principle and requested to inform procedural f ormalities, modus operandi and other related issues.''

The letter further informs the Textiles Secretary that ``we have not received any response so far from NJMC. We bring to your kind notice that MMTC, being a PSU, is trying to find out via-media under which raw jute can be supplied to NJMC for converting the same into hessian and sacking so that a sick unit can even become a profitable unit over a period of time.''

Mr Madhukar has also informed in his letter that ``we also understand that the workers' union is strongly against the private sector participation for this kind of tie-up arrangement.''

``We solicit your kind intervention to develop a strategic alliance between MMTC and NJMC for the mutual interest of both the organisations. A tripartite meeting could be arranged among the officials of the Ministry of Textiles, NJMC and MMTC at New Delh i to expedite the matter, if required,'' the letter said.