Lok Sabha Question No. 4824 (UNSTARRED), answered on 2016-12-15
Subject: NTC Mills
Ministry: TEXTILES
Asked by: KUNWAR HARIBANSH SINGH, GAJANAN CHANDRAKANT KIRTIKAR

## NTC MILLS

## 4824.   KUNWAR HARIBANSH SINGH: SHRI GAJANAN KIRTIKAR:

## Will the Minister of TEXTILES वस्त्र मंरी

be pleased to state:

- (a) the details of mills being run by National Textile Corporation (NTC) in the country at present;
- (b) the details of the installed capacity of these mills and their actual production during the last three years and the current year;
- (c) whether NTC mills are not utilizing their full capacity and if so, the details thereof along with the reasons therefor;
- (d) whether many NTC mills are running into losses even after their modernization and if so, the details thereof along with the reasons therefor, mill-wise; and
- (e) the expenditure involved in the modernization of each NTC mill during the said period and the corrective measures taken/being taken by the Government to improve the condition of NTC mills and make them running at their full capacity?

## उत्तर

## ( )

## ANSWER वस्त्र मंरी

## MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a): The details of 23 National Textile Corporation (NTC) Limited functioning mills and 5 through Joint Ventures are in Annexure - I.
- (b): The details of installed capacity and actual production during each of the last three years and the current year are in Annexure-2.
- (c): During the first half year of financial year i.e. April-September'2016, NTC mills have achieved 90.50% Capacity Utilization, which is considered as fairly good level.
- (d): During 2015-16, out of 23 running Mills, only 3 mills namely Cannanore Spinning and Weaving Mills, Cannanore, Burhanpur Tapti Mills,  Burhanpur and Finlay Mills, Achalpur generated cash profit. The main reasons for incurring loss by NTC Mills are as under:
1. Low level of modernization- Level of modernization of NTC mills is only 50%.
2. NTC is producing basic material i.e. Grey Yarn and Grey Cloth and does not produce value added material.
3. Higher cost of production due to locational disadvantages of various NTC mills.
4. Higher power cost due to traditional procurement of power from various State Electricity Boards.
- (e): The mill wise amount spent on Modernization as on 30.09.2016 is given at Annexure-3.  As per Board for Industrial and Financial Reconstruction approved revival scheme  MS-08, NTC has given dose of modernization to 23 units on its own.  NTC is in process to optimize its various resources to reduce the cost  of  production  by  purchasing  of  power  through  open  access, renegotiation of  workload  settlement with trade unions, coupled with introduction of value added products.

|    |                                            |                                            |                                            | Annexure-1                                 |
|----|--------------------------------------------|--------------------------------------------|--------------------------------------------|--------------------------------------------|
|    | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF  | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF  | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF  | LIST OF 23 MILLS MODERNIZED BY NTC ITSELF  |
| A  |                                            | Sr.NO.                                     | NAMEOF THE MILLS                           | LOCATION                                   |
|    | ANDHRA PRADESH                             |                                            |                                            |                                            |
|    |                                            | 1                                          | TIRUPATHI COTTON MILLS                     | RENIGUNTA                                  |
|    | GUJARAT                                    |                                            |                                            |                                            |
|    |                                            | 2                                          | RAJNAGAR MILLS                             | AHMEDABAD                                  |
|    | KARNATAKA                                  |                                            |                                            |                                            |
|    |                                            | 3                                          | NEW MINERVA MILS                           | HASSAN                                     |
|    | KERALA                                     |                                            |                                            |                                            |
|    |                                            | 4                                          | ALGAPPA TEXTILE MILLS                      | ALAGAPPANAGAR                              |
|    |                                            | 5                                          | CANNANORE SPG.& WVG.MILLS                  | CANNANORE                                  |
|    |                                            | 6                                          | KERALA LAXMI MILLS                         | TRICHUR                                    |
|    |                                            | 7                                          | VIJAYAMOHINI MILLS                         | TRIVANDRUM                                 |
|    | MADHYA PRADESH                             |                                            |                                            |                                            |
|    |                                            | 8                                          | BURHANPUR TAPTI MILLS                      | BURHANPUR                                  |
|    |                                            | 9                                          | NEW BHOPAL TEXTILE MILLS                   | BHOPAL                                     |
|    | MAHARASHTRA                                |                                            |                                            |                                            |
|    |                                            | 10                                         | PODAR MILLS                                | MUMBAI                                     |
|    |                                            | 11                                         | TATA MILLS                                 | MUMBAI                                     |
|    |                                            | 12                                         | INDIA UNITED MILL NO.5                     | MUMBAI                                     |
|    |                                            | 13                                         | BARSHI TEXTILE MILLS                       | BARSHI                                     |
|    |                                            | 14                                         | FINLAY MILLS                               | ACHALPUR                                   |
|    | MAHE                                       |                                            |                                            |                                            |
|    |                                            | 15                                         | CANNANORE SPG.& WVG.MILLS                  | MAHE                                       |
|    | TAMIL NADU                                 |                                            |                                            |                                            |
|    |                                            | 16                                         | PIONEER SPINNERS MILLS                     | KAMUDAKUDI                                 |
|    |                                            | 17                                         | KALEESWARAR MILLS 'B' UNIT                 | KALAYARKOIL                                |
|    |                                            | 18                                         | CAMBODIA MILLS                             | COIMBATORE                                 |
|    |                                            | 19                                         | COIMBATORE MURUGAN MILLS                   | COIMBATORE                                 |
|    |                                            | 20                                         | PANKAJA MILLS                              | COIMBATORE                                 |
|    |                                            | 21                                         | SRI RANGAVILAS S.& W. MILLS                | COIMBATORE                                 |
|    |                                            | 22                                         | COIMBATORE SPG &WVGMILLS                   | COIMBATORE                                 |
|    | WEST BENGAL                                |                                            |                                            |                                            |
|    |                                            | 23                                         | ARATI COTTON MILLS                         | DASS NAGAR                                 |
| B  | LIST OF 5 MILLS MODERNIZEDTHROUGH JV ROUTE | LIST OF 5 MILLS MODERNIZEDTHROUGH JV ROUTE | LIST OF 5 MILLS MODERNIZEDTHROUGH JV ROUTE | LIST OF 5 MILLS MODERNIZEDTHROUGH JV ROUTE |
|    | MAHARASHTRA                                |                                            |                                            |                                            |
|    |                                            | 1                                          | INDIA UNITED MILLS NO.1                    | MUMBAI                                     |
|    |                                            | 2                                          | APOLLO TEXTILE MILLS                       | MUMBAI                                     |
|    |                                            | 3                                          | GOLDMOHUR MILLS                            | MUMBAI                                     |
|    |                                            | 4                                          | NEW CITY OF BOMBAY MFG. MILLS              | MUMBAI                                     |
|    |                                            | 5                                          | AURANGABAD TEXTILE MILLS                   | AURANGABAD                                 |

| Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        | Annexure-2                        |
|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|-----------------------------------|
| National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. | National Textile Corporation Ltd. |
|                                   | Installed Capacity                | Installed Capacity                | (A Govt of india Undertaking)     | (A Govt of india Undertaking)     | (A Govt of india Undertaking)     | (A Govt of india Undertaking)     | Cloth Production (Lac/Mtrs)       | Cloth Production (Lac/Mtrs)       | Cloth Production (Lac/Mtrs)       | Cloth Production (Lac/Mtrs)       |
| Mills                             | Spindles (Nos.)                   | Looms (Nos.)                      | 2013-14                           | 2014-15                           | 2015-16                           | April- Sep.'16                    | 2013- 14                          | 2014 -15                          | 2015- 16                          | April- Sep.'16                    |
| Algappa                           | 45296                             | 0                                 | 24.06                             | 24.93                             | 26.23                             | 14.06                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Can Can                           | 52032                             | 0                                 | 32.00                             | 45.68                             | 48.50                             | 24.05                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Mahe                              | 28560                             | 0                                 | 14.79                             | 16.31                             | 17.22                             | 9.79                              | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Kerala lakshmi                    | 42944                             | 0                                 | 29.57                             | 29.05                             | 28.07                             | 14.58                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Vijay Mohini                      | 25056                             | 0                                 | 19.15                             | 19.09                             | 19.77                             | 10.11                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Cambodai                          | 42672                             | 0                                 | 22.74                             | 25.54                             | 25.71                             | 13.48                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Rangavilas                        | 40320                             | 0                                 | 21.64                             | 20.85                             | 24.60                             | 12.87                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Pankaja                           | 31500                             | 0                                 | 15.67                             | 17.93                             | 19.19                             | 10.67                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Pioneer                           | 46176                             | 0                                 | 18.43                             | 28.98                             | 33.05                             | 16.87                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Kal'B'                            | 52768                             | 0                                 | 23.18                             | 34.51                             | 35.02                             | 18.64                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Coimb. Murgan                     | 15960                             | 48                                | 6.47                              | 7.21                              | 8.62                              | 5.52                              | 39.15                             | 51.5 8                            | 29.48                             | 11.23                             |
| Tata                              | 34640                             | 96                                | 20.61                             | 19.25                             | 19.65                             | 10.53                             | 37.80                             | 34.2 7                            | 33.64                             | 17.71                             |
| Podar                             | 13776                             | 0                                 | 22.86                             | 8.10                              | 7.69                              | 4.06                              | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Indu                              | 39008                             | 0                                 | 24.33                             | 24.97                             | 25.60                             | 12.81                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Barshi                            | 23312                             | 0                                 | 14.46                             | 13.84                             | 16.25                             | 7.39                              | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| NBT                               | 48528                             | 0                                 | 29.39                             | 32.46                             | 42.71                             | 21.17                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| BTM                               | 51264                             | 0                                 | 39.27                             | 43.33                             | 52.72                             | 28.21                             | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Arati                             | 29520                             | 0                                 | 16.51                             | 17.40                             | 19.56                             | 9.62                              | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Minerva Hassan                    | 43200                             | 48                                | 16.03                             | 13.50                             | 16.17                             | 9.44                              | 22.45                             | 20.8 5                            | 24.13                             | 11.33                             |
| Finlay Achalpur                   | 58240                             | 144                               | 32.04                             | 32.35                             | 32.22                             | 16.49                             | 10.30                             | 25.3 4                            | 54.29                             | 28.76                             |
| Tirupathi                         | 8640                              | 0                                 | 9.97                              | 9.12                              | 8.90                              | 4.76                              | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| CSW                               | 17136                             | 0                                 | 7.70                              | 9.61                              | 7.17                              | 4.37                              | 0.00                              | 0.00                              | 0.00                              | 0.00                              |
| Rajnagar                          | 36000                             | 72                                | 28.24                             | 24.53                             | 27.40                             | 16.16                             | 38.08                             | 39.6 6                            | 48.80                             | 42.88                             |
| TOTAL                             | 826548                            | 408                               | 489.11                            | 518.54                            | 562.02                            | 295.65                            | 147.7 8                           | 171. 70                           | 190.3 4                           | 111.91                            |

Annexure-3 Statement Showing Mill wise Amount Spent towards Modernisation as on 30.09.2016

| Sr. NO.                             | NAMEOFTHEMILLS                            | Amount spent on Modernization/ Expansion (Rs. In Cr.)   | Amount spent on Modernization/ Expansion (Rs. In Cr.)   |
|-------------------------------------|-------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| A                                   |                                           | Modernization                                           | Expansion                                               |
| 1                                   | ALGAPPA TEXTILE MILLS                     | 24.87                                                   |                                                         |
| 2                                   | CANNANORE S &WMILLS, CAN                  | 79.23                                                   | 73.91                                                   |
| 3                                   | KERALA LAXMI MILLS                        | -11.28                                                  |                                                         |
| 4                                   | VIJAYAMOHINI MILLS                        | -84.71                                                  |                                                         |
| 5                                   | CANNANORE S &WMILLS, MAHE                 | 33.37                                                   |                                                         |
| 6                                   | PODAR MILLS                               | 39.96                                                   |                                                         |
| 7                                   | BARSHI TEXTILE MILLS                      | 24.67                                                   |                                                         |
| 8                                   | TATA MILLS                                | 80.87                                                   |                                                         |
| 9                                   | INDIA UNITED MILL NO.5                    | 31.44                                                   |                                                         |
| 10                                  | CAMBODIA MILLS                            | 13.32                                                   |                                                         |
| 11                                  | COIMBATORE MURUGAN MILLS                  | 15.96                                                   |                                                         |
| 12                                  | PANKAJA MILLS                             | 22.23                                                   |                                                         |
| 13                                  | PIONEER SPINNERS MILLS                    | -79.97                                                  | 51.46                                                   |
| 14                                  | SRI RANGAVILAS S.& W. MILLS               | 143.03                                                  |                                                         |
| 15                                  | KALEESWARAR MILLS 'B' UNIT                | 69.09                                                   | 46.62                                                   |
| 16                                  | ARATI COTTON MILLS                        | 48.05                                                   |                                                         |
| 17                                  | BURHANPUR TAPTI MILLS                     | 25.05                                                   | 94.37                                                   |
| 18                                  | NEW BHOPAL TEXTILE MILLS                  | 29.61                                                   | 70.31                                                   |
|                                     | Sub-total                                 | 504.79                                                  | 336.67                                                  |
| B New Mills set up by relocation    | Total cost of modernization and expansion | 841.46                                                  | 841.46                                                  |
|                                     |                                           | Amount Invested                                         | Amount Invested                                         |
| 19                                  | FINLAY MILLS                              | 254.66                                                  | 254.66                                                  |
| 20                                  | MINERVA MILS                              | 241.15                                                  | 241.15                                                  |
| 21                                  | RAJNAGAR TEX. MILLS                       | 100.34                                                  | 100.34                                                  |
|                                     | Sub-total B                               | 596.15                                                  | 596.15                                                  |
| Mills which are yet to be modernize |                                           | Amount Spent                                            | Amount Spent                                            |
| 22                                  | COIMBATORE S &WMill                       | 0.82                                                    | 0.82                                                    |
| 23                                  | TIRUPATHI MILLS                           | 3.85                                                    | 3.85                                                    |
| 24                                  | Amravati Project                          | 469.00                                                  | 469.00                                                  |
| Sub-total                           | Sub-total                                 | 473.67                                                  | 473.67                                                  |
|                                     | Misc. Capital expenditure                 | 96.43                                                   | 96.43                                                   |
|                                     | Grand Total                               | 2007.71                                                 | 2007.71                                                 |