Date:07/07/2006 URL: http://www.thehindubusinessline.com/2006/07/07/stories/2006070704400100.htm

Back NTC seeks nod to sell 93 acres

Shailesh Menon

Stands to net more than Rs 3,000 cr

Milking mill lands
Sale proposals of nine mills sent to State Govt, MCGM
Officials hope to sell land by early 2007
NTC has total of 133 acres of surplus land for sale

Mumbai , July 6

National Textiles Corporation (NTC) hopes to get clearance soon for the sale of about 93 acres of surplus mill land in Mumbai.

The Corporation has sent sale proposals of nine mills (some only in parts) to the State Government and the Municipal Corporation of Greater Mumbai (MCGM) for final clearance.

"Pending issues like who would undertake the `infrastructure study' (the MCGM or the NTC) and the restrictions set by the Maharashtra Heritage Conservation Committee will be reviewed and a consensus would be reached upon soon," said an NTC official.

The plan is to complete the tender process by the last quarter of 2006. Prior to this, the NTC had sold 49 acres of mill land in Mumbai last year.

If all goes as per the plan, NTC officials hope they can sell the land by early 2007.

The mills which are on the block are: Podar Process Mill, Bharat Mills, Kohinoor Mill, Tata Mill (part land only), India United Mill No 1 (part land only), Finley Mill (part land only), Digvijay Mills Jam Manufacturing Mill, and Sri Madhusudhan Mill.

The NTC has 133 acres of surplus land for sale. (The total land before the first phase sale was 182 acres. It sold 49 acres for about Rs 2,000 crore before the October court ruling at prices of up to Rs 14,800 per sq ft.)

According to analysts, the NTC stands to net more than Rs 3,000 crore from the sale.

"It will be difficult to predict our earnings from the sale. Local developers are vehemently trying to pull down prices. Moreover, if we are not able to reach a consensus on heritage conservation issue, prices will plunge deep," said an official.

The sale proceeds will only be enough to repay loans taken at 10 per cent interest from banks by the NTC. It owes a substantial amount of money to the Central Government as well.

The NTC, along with the Ministry of Textiles and Ministry of Commerce, is also planning to construct a 70-storeyed trade tower at the India United Mill No 6 land.

The tower, estimated to cost to Rs 700 crore (Rs 300 crore to be set aside for land and Rs 400 crore for construction of the tower), will exclusively cater to the textile and diamond polishing industries.