Date:08/03/2005 URL: http://www.thehindubusinessline.com/2005/03/08/stories/2005030800830700.htm

Back `NTC land sale only via tender route'

Our Bureau

Coimbatore , March 7

THE Union Textile Minister, Mr Shankersinh Vaghela, has reiterated that the sale of surplus land owned by National Textile Corporation (NTC) would only be through outright tender process and all transactions in this regard would be transparent.

Talking to press persons here, the Minister maintained that there was some wrong impression created in recent times with regard to NTC land sale and it was made to appear that NTC would sell mill lands directly to the builders. But it that was not the case and his Ministry had decided to appoint real estate consultants for valuation of NTC lands and give suggestions on sale such as working out joint ventures or outright sales and so on.

Mr Vaghela at the same time felt that since the NTC's lands were coming from textile mills, there can be a textile `posture' in the sale of these lands by creating commercial cloth/fabric marts, handicraft centres or trade centres relating to textiles in these lands as well as putting up hotels, hospitals or middle-income housing projects through joint venture partnerships.

NTC had already raised Rs 1,900 crore through bonds from institutions to meet out the financial commitment for compensating the NTC workers who opted for VRS and the corporation had to raise this amount from the sale of lands to pay out its borrowings. As for the sale of NTC land in Maharashtra, Mr Vaghela said NTC had a schedule to open the bids received for sale of Jubiter Mills in Mumbai.

As for the grievance on the duty structure for the viscose staple fibre sector, Mr Vaghela said the end users of the VSF from Tamil Nadu were scheduled to meet him during his visit to Bhavani and he would look into their representations.