Lok Sabha Question No. 1707 (UNSTARRED), answered on 2015-07-30
Subject: Losses to NTC Mills
Ministry: TEXTILES
Asked by: SHARAD TRIPATHI, RAJESHBHAI NARANBHAI CHUDASAMA

LOK SABHA

UNSTARRED QUESTION NO.1707

TO BE ANSWERED ON 30.07.2015

**LOSSES TO NTC MILLS**

1707. 	SHRI SHARAD TRIPATHI:

SHRI RAJESHBHAI CHUDASAMA:

Will the Minister of TEXTILES वस्त्र मंत्री

be pleased to state:

(a) 	whether National Textiles Corporation (NTC) is incurring continuous losses for the last five years;

(b) 	if so, the reasons for incurring such losses continuously, Mill-wise;

(c) 	whether the Government has formulated any revival plan for NTC; and

(d) 	if so, the details thereof?

उत्तर

ANSWER

वस्त्र राज्‍य मंत्री (स्वतंत्र प्रभार) (श्री संतोष कुमार गंगवार)

MINISTER OF STATE (INDEPENDENT CHARGE)

IN THE MINISTRY OF TEXTILES

(SHRI SANTOSH KUMAR GANGWAR)

**(a) & (b):** No Madam. The details of Profit and Losses in NTC for the last  5 years is as under:-

Year				Amount (Rs. in Crores)

Profit	Loss

2010-11	1304.24	---

2011-12	130.15	---

2012-13	85.12	---

2013-14	---	175.71

2014-15	---	316.25

The Mill- wise details of cash Profit & Loss for the last five years i.e. from 2010-11 to 2014-15 is enclosed as Annexure-1.  During 2010-11 to 2014-15, NTC incurred losses due to various reasons including the following :-

1. Lack of modernization- Present modernization index of NTC Mills is 50% which has the adverse effect on Productivity and Quality of the Products.
2. High Wage/Shortage of Skilled Labour – Skilled Labour shortage is ranging from 3% to 7%. resulting into lower capacity utilization.
3. Non availability of power supply by State - It is more specifically Southern region, loss of utilization due to Power Shortage has been 4.52%, resulting in higher Power Cost due to use of diesel generator.
4. High wages cost- Against standard of 10%-12% of the Value of Production the actuals in NTC Mills is in range of 20%-25%.

**(c) & (d)** :	NTC with the assistance of Northern India Textiles Research Association (NITRA) has prepared NTC-Future revival Plan-2015, to be implemented in 2 phases.  The 1 st Phase of revival plan approved by the NTC Board consists of the following constituents –

1. Setting up Amravati Spinning unit consisting of consolidation and relocation of 4 Maharashtra Mills, with addition of 4-open end spinning and 8-vortex machines.
2. Setting up Amravati Weaving & Processing unit with a weaving capacity of 250 looms, wider width process house of 1,00,000 meters per day capacity with coating machine, 5 ton/day yarn dyeing capacity and automated sheet manufacturing line for 70,000 meters.
3. Alagappa mills to be merged at the land of Kerala Lakshmi mills.
4. Addition of 84 automatic looms at Finlay Mills Achalpur with technological gap filling.
5. Addition of 24 looms and yarn dyeing with technological gap filling at New Minerva Mills Hassan.
6. Technological gap to be filling in Rajnagar, Cannanore Spinning and Weaving Mill, Kannur and Vijaya Mohini Mills Trivandrum.

|                                                               |             |               |             | **ANNEXURE-1**   |                  |
|---------------------------------------------------------------|-------------|---------------|-------------|------------------|------------------|
| **National Textile Corporation Ltd.**                         |             |               |             |                  |                  |
| **(A Govt. of india Undertaking)**                            |             |               |             |                  |                  |
| **Statement Showing Mill-wise 5 Years  Cash Profit and Loss** |             |               |             |                  |                  |
|                                                               |             |               |             |                  |                  |
|                                                               |             |               |             |                  | **Rs. In Lakh.** |
| **Mills**                                                     | **2010-11** | **2011-12**   | **2012-13** | **2013-14**      | **2014-15**      |
| **Algappa**                                                   | **-75.42**  | **-297.06**   | **170.33**  | **-167.34**      | **-289.80**      |
| **Can Can**                                                   | **271.28**  | **-306.45**   | **340.14**  | **240.34**       | **485.90**       |
| **Mahe**                                                      | **-16.27**  | **-566.64**   | **216.92**  | **-56.51**       | **-162.61**      |
| **Kerala lakshmi**                                            | **-0.11**   | **-509.92**   | **252.97**  | **-23.72**       | **-96.97**       |
| **Vijay Mohini**                                              | **62.14**   | **-283.23**   | **261.98**  | **46.00**        | **12.27**        |
| **Cambodai**                                                  | **129.59**  | **-603.78**   | **128.60**  | **-221.75**      | **-281.78**      |
| **Rangavilas**                                                | **28.17**   | **-967.70**   | **5.23**    | **62.83**        | **-85.45**       |
| **Pankaja**                                                   | **22.67**   | **-756.88**   | **-141.26** | **-280.65**      | **-372.58**      |
| **Pioneer**                                                   | **19.23**   | **-630.72**   | **-229.74** | **-327.13**      | **-368.16**      |
| **Kal'B'**                                                    | **130.61**  | **-514.07**   | **3.48**    | **-211.20**      | **-137.09**      |
| **Coimb.Murgan**                                              | **-0.01**   | **-400.21**   | **-239.30** | **-343.83**      | **-335.32**      |
| **Tata**                                                      | **-608.02** | **-1644.07**  | **-620.99** | **-1488.68**     | **-1902.54**     |
| **Podar**                                                     | **-127.34** | **-1025.63**  | **-172.21** | **-853.31**      | **-1284.69**     |
| **Indu**                                                      | **-76.18**  | **-807.95**   | **-53.63**  | **-679.33**      | **-858.08**      |
| **Barshi**                                                    | **94.19**   | **-610.37**   | **16.71**   | **-264.81**      | **-279.40**      |
| **NBT**                                                       | **117.35**  | **-686.88**   | **105.78**  | **-241.73**      | **-688.78**      |
| **BTM**                                                       | **207.17**  | **-236.16**   | **451.79**  | **345.64**       | **388.17**       |
| **Arati**                                                     | **35.70**   | **-73.15**    | **9.71**    | **-75.89**       | **-408.92**      |
| **Minerva Hassan**                                            | **25.98**   | **-223.03**   | **69.38**   | **202.59**       | **-59.41**       |
| **Finlay Achalpur**                                           | **50.91**   | **-693.66**   | **1040.81** | **1115.39**      | **212.74**       |
| **Tirupathi**                                                 | **5.56**    | **-391.90**   | **-92.90**  | **-127.73**      | **-260.30**      |
| **CSW**                                                       | **-336.99** | **-376.08**   | **-169.91** | **-199.53**      | **-188.77**      |
| **Rajnagar**                                                  | **0.00**    | **-347.63**   | **125.86**  | **133.82**       | **-764.31**      |
| **TOTAL**                                                     | **-39.79**  | **-12953.17** | **1479.75** | **-3416.53**     | **-7725.88**     |
| **Finlay Mumbai**                                             | **-335.16** | **-493.09**   | **-395.05** | **-627.67**      | **-383.34**      |
| **TOTAL**                                                     | **-374.95** | **-13446.26** | **1084.70** | **-4044.20**     | **-8109.22**     |

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