Lok Sabha Question No. 4181 (UNSTARRED), answered on 2019-12-13
Subject: NTC Mills
Ministry: TEXTILES
Asked by: Vinayak Bhaurao Raut, DNV Senthilkumar. S., Mohanbhai Kalyanji Kundariya

## LOK SABHA UNSTARRED QUESTION NO. 4181

## TO BE ANSWERED ON 13.12.2019

## NTC MILLS

## 4181. SHRI VINAYAK RAUT:

DR. DNV SENTHILKUMAR S.:

SHRI  MOHANBHAI KALYANJI KUNDARIYA:

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

- (a) the total number of National Textile Corporation (NTC) Mills closed down in the country so far, State-wise;
- (b) whether the regular power cut and labour shortage are affecting the production and profit of mills run by National Textile Corporation (NTC), if so, the details thereof and the corrective steps taken in this regard;
- (c) whether  the  Government  proposes  to  disinvest  the  NTC  mills  and  if  so,  the details thereof and the reasons therefor;
- (d) whether  the  Government  also  proposes  to  use  the  land,  buildings  and machineries of the closed mills and if so, the details thereof;
- (e) whether the Government proposes to settle the dues of employees and workers in  closed  mills  by  giving  benefits  equivalent  to  the  benefits  available  to employees and workers in functioning mills and if so, the details thereof; and
- (f) the other steps taken by the Government to modernize NTC mills through Joint Venture with private sector?

## उत्तर

## ANSWER

## वस्त्र मंरी ( श्रीमती स्मृ तत ज़ूबिन इरानी )

MINISTER OF TEXTILES

(SMT. SMRITI ZUBIN IRANI)

(a): National  Textile  Corporation  Ltd.  (NTC)  was  established  primarily  to arrange the affairs of the sick textiles undertakings taken over by the Government  of  India  in  three  Nationalization  Act  in  the  year  1974,  1986  and 1995.  On the basis of techno-economic viability study, 78 unviable mills were closed  under  Industrial  Dispute  (ID)  Act  during  2002-2011  as  per  Board  for Industrial and Financial Reconstruction (BIFR) approved Revival Schemes i.e. in 2002, 2006 and 2008 of National Textile Corporation (NTC). State-wise details are at Annexure.

- (b): There  is  excess  labour  in  NTC  in  comparison  to  the  norms  of  actual production.  NTC  mills  require  an  uninterrupted  supply  of  power  for  ensuring quality  and  productivity.  In  order  to  ensure  steady  supply  of  power, NTC  has taken steps for installation of roof top solar panel with capacity of 780 KWP in two of  the  NTC  mills  and  implementation  of  work  load  settlement  coupled  with improvement in modernisation level, to reduce the man machine ratio.

(c) & (d): NTC has been reporting operating losses since its inception. NITI Aayog in  its  fifth  tranche  report  stated  that  NTC  is  of  no  strategic  importance  and recommended  that  all  the  working  mills  should  be  100  percent  disinvested  as separate units or in groups via a transparent two stage auction. In this regard, Core Group of Secretaries (CoS) on Disinvestment considered the above recommendations  of  NITI  Aayog  on  11.10.2018  and  recommended  that  the Ministry  of  Textiles  may  prepare  a  blue  print  for  bunching  of  the  mills  in two/three  groups  and  demerge  all  lands  to  a  Special  Purpose  Vehicle  (SPV). Thereafter, a view on the strategic disinvestment of NTC may be taken.   NTC is engaging an independent expert Govt. agency for verification of its moveable and immovable assets.  After completion of this exercise, a final view on the issue of strategic  disinvestment  /disposal  of  assets  of  non-operating/closed  mills  will  be taken with the approval of the competent authority.

(e): The employees and workers of closed mills were paid attractive compensation package under Modified Voluntary Retirement Scheme (MVRS) and an amount of Rs. 1,574.83 crore was incurred towards payment of MVRS and other benefits to 46,150  employees  relieved  during  2002-2011  in  78  closed  mills.  The  MVRS benefits  given  to  the  workers  in  closed  mills  were  same  as  were  given  to  the surplus workers of functional mills.

(f): NTC  revived  5  mills  through  joint  venture  route  since  November  2007. Memorandums of Understanding (MoUs) signed with Joint Venture partners in respect of 11 other mills in 2008 were terminated on 14 th  January, 2010 as the Joint Venture partners failed to enter into definitive agreements with NTC within the specified time.

## Annexure

| STATE-WISE LIST OF 78 MILLS CLOSED UNDER INDUESTRIAL DISPUTE (I.D.) ACT   | STATE-WISE LIST OF 78 MILLS CLOSED UNDER INDUESTRIAL DISPUTE (I.D.) ACT   | STATE-WISE LIST OF 78 MILLS CLOSED UNDER INDUESTRIAL DISPUTE (I.D.) ACT   | STATE-WISE LIST OF 78 MILLS CLOSED UNDER INDUESTRIAL DISPUTE (I.D.) ACT   |
|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                                                                           | S. No. NAME OF THE                                                        | MILLS                                                                     | LOCATION                                                                  |
| Andhra Pradesh                                                            |                                                                           |                                                                           |                                                                           |
|                                                                           | 1                                                                         | AZAM JAHI MILLS                                                           | Warangal                                                                  |
|                                                                           | 2                                                                         | NATRAJ SPINNING MILLS                                                     | Adilabad                                                                  |
|                                                                           | 3                                                                         | ADONI COTTON MILLS                                                        | Adoni                                                                     |
|                                                                           | 4                                                                         | NETHA SPINNING MILLS                                                      | Secunderabad                                                              |
|                                                                           | 5                                                                         | ANANTHAPUR COTTON MILLS                                                   |                                                                           |
| Assam                                                                     |                                                                           |                                                                           |                                                                           |
|                                                                           | 6                                                                         | ASSOCIASED INDUSTRIES                                                     | Chandrapur                                                                |
| Bihar                                                                     |                                                                           |                                                                           |                                                                           |
|                                                                           | 7                                                                         | GAYA COTTON & JUTE MILLS                                                  | Gaya                                                                      |
|                                                                           | 8                                                                         | BIHAR CO-OPERATIVE MILLS                                                  | Mokameh                                                                   |
| Gujarat                                                                   |                                                                           |                                                                           |                                                                           |
|                                                                           | 9                                                                         | AHMEDBAD JUPITER TEX. MILLS                                               | Ahmedabad                                                                 |
|                                                                           | 10                                                                        | JEHANGIR TEXTILE MILLS                                                    | Ahmedabad                                                                 |
|                                                                           | 11                                                                        | MAHALAXMI TEX.MILLS                                                       | Bhavnagar                                                                 |
|                                                                           | 12                                                                        | NEW MANEKCHOWK TEX.MILL                                                   | Ahmedabad                                                                 |
|                                                                           | 13                                                                        | PETLAD TEX.MILLS                                                          | Petlad                                                                    |
|                                                                           | 14                                                                        | RAJKOT TEX.MILLS                                                          | Rajkot                                                                    |
|                                                                           | 15                                                                        | VIRAMGAM TEX.MILLS                                                        | Viramgam                                                                  |
|                                                                           | 16                                                                        | RAJNAGAR II                                                               | Ahmedabad                                                                 |
|                                                                           | 17                                                                        | HIMADARI TEXTILE MILLS                                                    | Ahmedabad                                                                 |
|                                                                           | 18                                                                        | AHMEDABAD NEW TEXTILE MILLS                                               | Ahmedabad                                                                 |
| Karnataka                                                                 |                                                                           |                                                                           |                                                                           |
|                                                                           | 19                                                                        | M.S.K. MILLS                                                              | Gulbarga                                                                  |
|                                                                           | 20                                                                        | MYSORE SPG. & MFG. MILLS                                                  | Bangalore                                                                 |
|                                                                           | 21                                                                        | SHREE YALLAMA COTTON MILLS                                                | Davangere                                                                 |
|                                                                           | 22                                                                        | MINERVA MILLS                                                             | Bangalore                                                                 |
| Madhya Pradesh                                                            |                                                                           |                                                                           |                                                                           |
|                                                                           | 23                                                                        | BENGAL NAGPUR COTTON MILLS                                                | Rajnandgaon                                                               |
|                                                                           | 24                                                                        | HIRA MILLS                                                                | Ujjain                                                                    |
|                                                                           | 25                                                                        | INDORE MALWA UNITED MILLS                                                 | Indore                                                                    |
|                                                                           | 26                                                                        | KALYAN MAL MILLS                                                          | Indore                                                                    |
|                                                                           | 27                                                                        | SWADESHI TEXTILE MILLS                                                    | Indore                                                                    |
| Maharashtra                                                               |                                                                           |                                                                           |                                                                           |
|                                                                           | 28                                                                        | INDIA UNITED MILLS NO.2                                                   | Mumbai                                                                    |
|                                                                           | 29                                                                        | INDIA UNITED MILLS NO.3                                                   | Mumbai                                                                    |
|                                                                           | 30                                                                        | INDIA UNITED MILLS NO.4                                                   | Mumbai                                                                    |
|                                                                           | 31                                                                        | KOHINOOR MILLS NO.2                                                       | Mumbai                                                                    |
|                                                                           | 32                                                                        | KOHINOOR MILLS NO.3                                                       | Mumbai                                                                    |
|                                                                           | 33                                                                        | JAM MFG. MILLS                                                            | Mumbai                                                                    |
|                                                                           | 34                                                                        | MODEL MILLS                                                               | Nagpur                                                                    |
|                                                                           | 35                                                                        | R.S.R.G. MILLS                                                            | Akola                                                                     |
|                                                                           | 36                                                                        | SHRI SITARAM MILLS                                                        | Mumbai                                                                    |
|                                                                           | 37                                                                        | VIDHARBHA MILLS                                                           | Achalpur                                                                  |
|                                                                           | 38                                                                        | BHARAT TEXTILE MILLS                                                      | Mumbai                                                                    |

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

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