Lok Sabha Question No. 126 (STARRED), answered on 2016-11-24
Subject: Modernisation of NTC Mills
Ministry: TEXTILES
Asked by: GAJANAN CHANDRAKANT KIRTIKAR, SUNIL BALIRAM GAIKWAD

## LOK SABHA STARRED QUESTION NO.*126 TO BE ANSWERED ON 24.11.2016

## MODERNISATION OF NTC MILLS

- *126.   SHRI GAJANAN KIRTIKAR: DR. SUNIL BALIRAM GAIKWAD:

## Will the Minister of TEXTILES वस्त्र मंरी be pleased to state :

- (a) whether  the  National  Textile  Corporation  (NTC)  had  earlier  decided  to modernize  its  12  mills  through  Joint  Venture  with  private  sector  including  the historic Nanded NTC Mills;
- (b) if  so,  the  details  of  the  mills  and  the  progress  made  in  the  modernization process;
- (c) whether the Government has received representations from public representatives to modernize and start production in various NTC mills;
- (d) if  so,  the  details  thereof  along  with  the  steps  taken/being  taken  by  the Government in this regard; and
- (e) the time by which the modernized NTC Mills are likely to start functioning?

## ANSWER

## ( )

MINISTER OF TEXTILES (SMT. SMRITI ZUBIN IRANI)

- (a) to (e): A statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK  SABHA  STARRED  QUESTION  NO.*126  TO  BE  ANSWERED  ON 24.11.2016.

(a) & (b): As per the Board for Industrial and Financial Reconstruction Revival Scheme - MS-08 of 2008 approved on 5 th September, 2008 18 mills of National Textile Corporation were identified for revival under Joint Venture route including Nanded  Textile  Mills,  Nanded,  Maharashtra.    After  review,  it  was  decided  that two mills would be revived by NTC itself. Memorandums of Undertaking (MoUs) were  accordingly  signed  with  JV  partners  for  revival  of  16  mills.    5  mills  of National  Textile  Corporation  have  been  revived  through  Joint  Venture  route. However,  the  Memorandums  of  Undertaking  (MoUs)  signed  with  the  Joint Venture  partners  in  respect  of  11  National  Textile  Corporation  mills  were terminated on 14 th September, 2010 as the Joint Venture partners failed to enter into definitive agreements with National Textile Corporation within the specified time.  The Joint Venture partners challenged the termination of MoU in the High Court of Delhi.  The Hon'ble Court has given a status-quo order and referred the matter  to  arbitration.    The  matter  is  sub-judice,  at  present.    The  details  of  the 11 mills are given in Annexure-I.

(c) to (e): The Government has received various representations from Hon'ble Members of  Parliament  and  other  Public  representatives  to  modernize  and  start production in various NTC Mills.  In terms of the BIFR sanctioned scheme, NTC has spent Rs.1605 crores towards modernization and expansion of 23 mills. The details are at Annexure-II.  78 mills found unviable as per the scheme have been closed.   The details are at Annexure-III.  As regards the 11 Joint Venture mills which were to be revived through Joint Venture route, further action can be taken only after the decision of the Court/Arbitral Tribunal.

## Annexure-I

## Details of 11 mills to be revived through Joint Venture where MoU has been cancelled.

|   1 | Chalisgaon Textile Mills   | Chalisgaon      | Maharashtra   |
|-----|----------------------------|-----------------|---------------|
|   2 | Dhule Textile Mills        | Dhule           | Maharashtra   |
|   3 | Nanded Textile Mills       | Nanded          | Maharashtra   |
|   4 | Savatram Ramprasad Mills   | Akola           | Maharashtra   |
|   5 | RBBASpg. &Wvg. Mills       | Hinganghat      | Maharashtra   |
|   6 | Sri Sarada Mills           | Coimbatore      | Tamilnadu     |
|   7 | Parvathi Mills             | Quilon          | Kerala        |
|   8 | Swadeshi Cotton Mills      | Maunath Bhanjan | Uttar Pradesh |
|   9 | Orissa Cotton Mills        | Bhagalpur       | Orissa        |
|  10 | Laxmi Narayan Cotton Mills | Rishra          | West Bengal   |
|  11 | Sodepur Cotton Mills       | Sodepore        | West Bengal   |

Annexure -II

## Details of 23 NTC mills showing Amount Spent towards Modernisation

| Sr. NO.                              | NAME OF THE MILLS               | Amount spent on Modernization/ Expantion   | Amount spent on Modernization/ Expantion   |
|--------------------------------------|---------------------------------|--------------------------------------------|--------------------------------------------|
| A                                    |                                 | Modernization                              | Expansion                                  |
| 1                                    | ALGAPPA TEXTILE MILLS           | 24.87                                      |                                            |
| 2                                    | CANNANORE S &WMILLS, CAN        | 52.26                                      | 73.91                                      |
| 3                                    | KERALA LAXMI MILLS              | 26.42                                      |                                            |
| 4                                    | VIJAYAMOHINI MILLS              | 24.85                                      |                                            |
| 5                                    | CANNANORE S &WMILLS, MAHE       | 33.85                                      |                                            |
| 6                                    | PODAR MILLS                     | 40.33                                      |                                            |
| 7                                    | BARSHI TEXTILE MILLS            | 24.67                                      |                                            |
| 8                                    | TATA MILLS                      | 80.87                                      |                                            |
| 9                                    | INDIA UNITED MILL NO.5          | 31.51                                      |                                            |
| 10                                   | CAMBODIA MILLS                  | 13.67                                      |                                            |
| 11                                   | COIMBATORE MURUGAN MILLS        | 16.94                                      |                                            |
| 12                                   | PANKAJA MILLS                   | 22.46                                      |                                            |
| 13                                   | PIONEER SPINNERS MILLS          | 22.13                                      | 51.46                                      |
| 14                                   | SRI RANGAVILAS S.& W. MILLS     | 53.50                                      |                                            |
| 15                                   | KALEESWARAR MILLS 'B' UNIT      | 23.94                                      | 46.62                                      |
| 16                                   | ARATI COTTON MILLS              | 48.14                                      |                                            |
| 17                                   | BURHANPUR TAPTI MILLS           | 25.13                                      | 94.37                                      |
| 18                                   | NEW BHOPAL TEXTILE MILLS        | 29.61                                      | 70.31                                      |
|                                      | Sub-total                       | 595.15                                     | 336.67                                     |
| B New Mills set up by                | Total cost of modernization and | 931.82                                     | 931.82                                     |
| relocation                           | expansion                       | Amount Invested                            | Amount Invested                            |
| 19                                   | FINLAY MILLS                    | 254.88                                     | 254.88                                     |
| 20                                   | MINERVA MILS                    | 176.35                                     | 176.35                                     |
| 21                                   | RAJNAGAR TEX. MILLS             | 141.11                                     | 141.11                                     |
|                                      | Sub-total B                     | 572.34                                     | 572.34                                     |
| Mills which are yet to be modernized |                                 | Amount Spent                               | Amount Spent                               |
| 22                                   | COIMBATORE S &WMill             | 0.82                                       | 0.82                                       |
| 23                                   | TIRUPATHI MILLS                 | 3.85                                       | 3.85                                       |
|                                      | Sub-total                       | 4.67                                       | 4.67                                       |
|                                      | Misc. Capital expenditure       | 96.43                                      | 96.43                                      |
|                                      | Grand Total                     | 1605.26                                    | 1605.26                                    |

## LIST OF 78 MILLS CLOSED UNDER I.D. ACT

|                | S. No.   | NAMEOFTHE MILLS               | LOCATION     | REASONS OF CLOSURE   |
|----------------|----------|-------------------------------|--------------|----------------------|
| Andhra Pradesh |          |                               |              |                      |
|                | 1        | AZAM JAHI MILLS               | Warangal     | Unviable             |
|                | 2        | NATRAJ SPINNING MILLS         | Adilabad     | Unviable             |
|                | 3        | ADONI COTTON MILLS            | Adoni        | Unviable             |
|                | 4        | NETHA SPINNING MILLS          | Secunderabad | Unviable             |
|                | 5        | ANANTHAPUR COTTON MILLS       |              | En-mass MVRS         |
| Assam          |          |                               |              |                      |
|                | 6        | ASSOCIASED INDUSTRIES         | Chandrapur   | En-mass MVRS         |
| Bihar          | 7        | GAYACOTTON &JUTE MILLS        | Gaya         | Unviable             |
|                | 8        | BIHAR CO-OPERATIVE MILLS      | Mokameh      | En-mass MVRS         |
| Gujarat        | 9        | AHMEDBAD JUPITER TEX. MILLS   | Ahmedabad    | Unviable             |
|                | 10       | JEHANGIR TEXTILE MILLS        | Ahmedabad    | Unviable             |
|                | 11       | MAHALAXMI TEX.MILLS           | Bhavnagar    | Unviable             |
|                | 12       | NEWMANEKCHOWKTEX.MILL         | Ahmedabad    | Unviable             |
|                | 13       | PETLAD TEX.MILLS              | Petlad       | Unviable             |
|                | 14       | RAJKOT TEX.MILLS              | Rajkot       | Unviable             |
|                | 15       | VIRAMGAM TEX.MILLS            | Viramgam     | Unviable             |
|                | 16       | RAJNAGAR II                   | Ahmedabad    | Unviable             |
|                | 17       | HIMADARI TEXTILE MILLS        | Ahmedabad    | Unviable             |
|                | 18       | AHMEDABADNEW TEXTILE MILLS    | Ahmedabad    | En-mass MVRS         |
| Karnataka      | 19       | M.S.K. MILLS                  | Gulbarga     | Unviable             |
|                | 20       | MYSORE SPG. &MFG. MILLS       | Bangalore    | Unviable             |
|                | 21       | SHREE YALLAMA COTTON MILLS    | Davangere    | En-mass MVRS         |
|                | 22       | MINERVA MILLS                 | Bangalore    | Relocated at Hassan  |
|                | 23       | BENGAL NAGPUR COTTON MILLS    | Rajnandgaon  | Unviable             |
|                | 24       | HIRA MILLS                    | Ujjain       | Unviable             |
|                | 25       | INDORE MALWAUNITED MILLS      | Indore       | Unviable             |
|                | 26       | KALYAN MALMILLS               | Indore       | Unviable             |
|                | 27       | SWADESHI TEXTILE              | Indore       | Unviable             |
| Maharashtra    | 28       | MILLS INDIA UNITED MILLS NO.2 | Mumbai       | Unviable             |
|                | 29       | INDIA UNITED MILLS NO.3       | Mumbai       | Unviable             |
|                | 30       | INDIA UNITED MILLS NO.4       | Mumbai       | Unviable             |
|                | 31       | KOHINOOR MILLS NO.2           | Mumbai       | Unviable             |
|                | 32       | KOHINOOR MILLS NO.3           | Mumbai       | Unviable             |
|                | 33       | JAM MFG. MILLS                | Mumbai       | Unviable             |
|                | 34       | MODEL MILLS                   | Nagpur       | Unviable             |
|                | 35       | R.S.R.G. MILLS                | Akola        | Unviable             |
|                | 36       | SHRI SITARAM MILLS            | Mumbai       | Unviable             |

## Annexure-III

|               | 37   | VIDHARBHA MILLS                      | Achalpur     | Unviable              |
|---------------|------|--------------------------------------|--------------|-----------------------|
|               | 38   | BHARAT TEXTILE MILLS                 | Mumbai       | Unviable              |
|               | 39   | DIGV IJAY TEXTILE MILLS              | Mumbai       | Unviable              |
|               | 40   | ELPHINSTONE SPG&WVGMILLS             | Mumbai       | Unviable              |
|               | 41   | JUPITER TEXTILE MILLS                | Mumbai       | Unviable              |
|               | 42   | MUMBAI TEXTILE MILLS                 | Mumbai       | Unviable              |
|               | 43   | NEWHIND TEXTILE MILLS                | Mumbai       | Unviable              |
|               | 44   | PODAR PROCESSORS                     | Mumbai       | Unviable              |
|               | 45   | SHREE MADHUSUDAN MILLS               | Mumbai       | Unviable              |
|               | 46   | INDIA UNITED MILLS NO.6 ( DYE Works) | Mumbai       | En-mass MVRS          |
|               | 47   | KOHINOOR MILLS NO.1                  | Mumbai       | En-mass MVRS          |
|               | 48   | FINLAY MILLS                         | Mumbai       | Relocated at Achalpur |
| Punjab        |      |                                      |              |                       |
|               | 49   | DAYALBAGH SPG&WVGMILLS               | Amritsar     | Unviable              |
|               | 50   | PANIPAT WOOLLEN MILLS                | Kharar       | Unviable En-mass      |
|               | 51   | KHARAR TEXTILE MILLS                 | Kharar       | MVRS                  |
|               | 52   | SURAJ TEXTILE MILLS                  | Malout       | En-mass MVRS          |
| Rajasthan     |      |                                      |              |                       |
|               | 53   | EDWARD MILLS                         | Beawar       | Unviable              |
|               | 54   | SHREE BIJAY COTTON MILLS             | Bijianagar   | En-mass MVRS          |
| Uttar Pradesh |      |                                      |              |                       |
|               | 55   | ATHERTON MILLS                       | Kanpur       | Unviable              |
|               | 56   | BIJLI COTTON MILLS                   | Hathras      | Unviable              |
|               | 57   | LAXMIRATTAN COTTON MILLS             | Kanpur       | Unviable              |
|               | 58   | LORD KRISHNA TEX.MILLS               | Saharanpur   | Unviable              |
|               | 59   | MUIR MILLS                           | Kanpur       | Unviable              |
|               | 60   | NEWVICTORIA MILLS                    | Kanpur       | Unviable              |
|               | 61   | RAE BARELI TEX. MILLS                | Raebareli    | Unviable              |
|               | 62   | SHRI VIKRAM COTTON MILLS             | Lucknow      | Unviable              |
|               | 63   | SWADESHI COTTON MILLS                | Kanpur       | Unviable              |
|               | 64   | SWADESHI COTTON MILLS                | Naini        | En-mass MVRS          |
| West Bengal   |      |                                      |              |                       |
|               | 65   | BANGASRI COTTON MILLS                | Sonepore     | Unviable              |
|               | 66   | BENGAL FINE S.&W.MILLS NO.II         | Kataganj     | Unviable              |
|               | 67   | MANINDRA B.T. MILLS                  | Cossim Bazar | Unviable              |
|               | 68   | JYOTI WVG. FACTORY                   | Patipukur    | Unviable              |
|               | 69   | CENTRAL COTTON MILLS                 | Belur        | Unviable              |
|               | 70   | SHREE MAHALAXMI COTTON               | Palta        | Unviable              |
|               | 71   | BENGAL FINE S.&W.MILLS NO.I          | Konnagar     | Unviable              |
|               | 72   | BENGAL LUXMI COTTON MILLS            | Serampore    | Unviable              |
|               | 73   | RAMPOORIA COTTON MILLS               | Rishra       | Unviable              |
| Tamil Nadu    |      |                                      |              |                       |
|               | 74   | BALARAMAVARMA TEXTILE MILLS          | Shencottah   | Unviable              |
|               | 75   | KISHNAVENI TEXTILE MILLS             | Coimbatore   | Unviable              |
|               | 76   | OMPARASAKTHI MILLS                   | Coimbatore   | Unviable              |
|               | 77   | SOMASUNDARAM MILLS                   | Coimbatore   | Unviable              |
|               | 78   | KALEESWARAR MILLS 'A' UNIT           | Coimbatore   | Unviable              |