Lok Sabha Question No. 2031 (UNSTARRED), answered on 2019-11-29
Subject: National Textile Corporation
Ministry: TEXTILES
Asked by: Bharti Pravin Pawar, Sadashiv Kisan Lokhande

## NATIONAL TEXTILE CORPORATION

## 2031.   DR. BHARATI PRAVIN PAWAR: SHRI SADASHIV KISAN LOKHANDE:

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

(a) whether the mills of National Textile Corporation that were modernised are still running in losses;

- (b) if so, the mill-wise details thereof along with the reasons therefor;
- (c) whether any enquiry of the said losses has been conducted;
- (d) if so, the outcome thereof; and
- (e) the reaction of the Government thereto?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ू बिन इरानी )

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

(a) to (e): National  Textile  Corporation  Ltd.  (NTC)  was  established  primarily  to  manage  the affairs of the sick textile undertakings taken over by the Government of India in three Nationalization Acts in the years 1974, 1986 and 1995. On account of obsolete technology, excess manpower, poor productivity  etc,  8  of  its  9  subsidiaries  were  referred  to  Board  for  Industrial  and  Financial Reconstruction  (BIFR)  in  the  year  1992-93.  BIFR  sanctioned  the  revival  scheme  thrice,  Sanction Scheme(SS)-2002  at  the  cost  of  Rs.3937  crores,  Modified  Scheme(MS)-2006  at  the  cost  of Rs.5267crores and MS-2008 at the cost of Rs.9102 crores.

In  terms  of  the  BIFR  recommendation,  3  new  mills  were  created  and  18  existing  mills  were modernized partially, at approximate expenditure of Rs.1646 crores. Since its inception, NTC mills have  been  incurring  operational  losses.  However,  the  losses  have  got  reduced  substantially  from around  Rs.600  crores in pre-modernisation  period  to around  Rs.300  crores  during  the  post modernisation period. NTC has given the benefit of Modified Voluntary Retirement Scheme (MVRS) to around 64000 employees and presently remaining with 14085 employees.

NTC is mainly producing yarn and greige fabric. The annual production of yarn and greige fabric during the year 2018-19 was 505.95 lakh kilograms and 190.06 lakh metres respectively. In addition, NTC is engaged in retail sale of nearly Rs.25 crores worth of printed and dyed fabric through its retail shops (out of a turnover of Rs.1100 crores per annum).

NTC has been reporting operating losses since its inception. In spite of modernization and several attempts  to  turnaround  the  company,  the  operational  losses  persist  mainly  on  account  of  high electricity  cost,  competition  with  producers  in  open  market  and  high  cost  of  inventory  etc.  The profit/losses incurred the 23 NTC mills in operation are detailed in Annexure.

| DETAILS OF NET PROFIT/LOSS OF 23 NTC WORKING MILLS (21 MODERNISED, 2 PARTIALLY   | DETAILS OF NET PROFIT/LOSS OF 23 NTC WORKING MILLS (21 MODERNISED, 2 PARTIALLY   | DETAILS OF NET PROFIT/LOSS OF 23 NTC WORKING MILLS (21 MODERNISED, 2 PARTIALLY   | DETAILS OF NET PROFIT/LOSS OF 23 NTC WORKING MILLS (21 MODERNISED, 2 PARTIALLY   | Annexure        |
|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|----------------------------------------------------------------------------------|-----------------|
|                                                                                  |                                                                                  |                                                                                  | (Rs. in Crores)                                                                  | (Rs. in Crores) |
| S.No.                                                                            | NAME OF THE MILLS                                                                | LOCATION                                                                         | 2017-18                                                                          | 2018-19         |
| (A)                                                                              | "23" MILLS REVIVED BY NTC ITSELF                                                 |                                                                                  |                                                                                  |                 |
| ANDHRA PRADESH                                                                   |                                                                                  |                                                                                  |                                                                                  |                 |
| 1                                                                                | TIRUPATHI COTTON MILLS ( Partialy modernized)                                    | Renigunta                                                                        | -3.86 -4.25                                                                      |                 |
| GUJARAT                                                                          |                                                                                  |                                                                                  |                                                                                  |                 |
| 2                                                                                | RAJNAGAR TEXTILE MILLS                                                           | Ahmedabad                                                                        | -24.82                                                                           | -16.43          |
| KERALA                                                                           |                                                                                  |                                                                                  |                                                                                  |                 |
| 3                                                                                | ALGAPPA TEX.MILLS                                                                | Algappanagar                                                                     | -11.00                                                                           | -10.42          |
| 4                                                                                | CANNANORE SPG.& WVG.MILLS                                                        | Cannanore                                                                        | -15.27                                                                           | -6.12           |
| 5                                                                                | KERALA LAXMI MILLS                                                               | Trichur                                                                          | -9.86                                                                            | -8.64           |
| 6                                                                                | VIJAYAMOHINI MILLS                                                               | Trivandrum                                                                       | -6.47                                                                            | -6.82           |
| KARNATAKA                                                                        |                                                                                  |                                                                                  |                                                                                  |                 |
| 7                                                                                | NEW MINERVA MILLS                                                                | Hassan                                                                           | -25.16                                                                           | -18.28          |
| MADHYA PRADESH                                                                   |                                                                                  |                                                                                  |                                                                                  |                 |
| 8                                                                                | BURHANPUR TAPTI MILLS                                                            | Burhanpur                                                                        | -18.62                                                                           | -11.11          |
| 9                                                                                | NEW BHOPAL TEX. MILLS                                                            | Bhopal                                                                           | -23.20                                                                           | -12.15          |
| MAHARASHTRA                                                                      |                                                                                  |                                                                                  |                                                                                  |                 |
| 10                                                                               | PODAR MILLS                                                                      | Mumbai                                                                           | -13.56                                                                           | -10.78          |
| 11                                                                               | TATA MILLS                                                                       | Mumbai                                                                           | -27.70                                                                           | -23.82          |
| 12                                                                               | INDIA UNITEDM ILL NO.5                                                           | Mumbai                                                                           | -14.04                                                                           | -14.53          |
| 13                                                                               | BARSHI TEX.MILLS                                                                 | Barshi                                                                           | -5.70                                                                            | -5.05           |
| 14                                                                               | FINLAY MILLS                                                                     | Achalpur                                                                         | -32.33                                                                           | -21.68          |
| PUDUCHERRY                                                                       |                                                                                  |                                                                                  |                                                                                  |                 |
| 15                                                                               | CANNANORE SPG.& WVG.MILLS                                                        | Mahe                                                                             | -8.72                                                                            | -6.77           |
| TAMIL NADU                                                                       |                                                                                  |                                                                                  |                                                                                  |                 |
| 16                                                                               | CAMBODIA MILLS                                                                   | Coimbatore                                                                       | -10.08                                                                           | -8.17           |
| 17                                                                               | COIMBATORE MURUGAN MILLS                                                         | Coimbatore                                                                       | -6.22                                                                            | -7.78           |
| 18                                                                               | PANKAJA MILLS                                                                    | Coimbatore                                                                       | -8.33                                                                            | -6.42           |
| 19                                                                               | PIONEER SPINNERS MILLS                                                           | Kamudakudi                                                                       | -14.38                                                                           | -11.16          |
| 20                                                                               | SRI RANGAVILAS S.& W. MILLS                                                      | Coimbatore                                                                       | -6.51                                                                            | -5.32           |
| 21                                                                               | KALEESWARAR MILLS 'B' UNIT                                                       | Kalayarkoil                                                                      | -10.85                                                                           | -6.30           |
| 22                                                                               | COIMBATORE SPG & WVGMILLS ( Partialy modernized )                                | Coimbatore                                                                       | -4.22                                                                            | -3.81           |
| WEST BENGAL                                                                      |                                                                                  |                                                                                  |                                                                                  |                 |
| 23                                                                               | ARATI COTTON MILLS                                                               | Dassnagar                                                                        | -16.60                                                                           | -15.00          |
|                                                                                  | Total                                                                            |                                                                                  | -317.50                                                                          | -240.82         |

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