Lok Sabha Question No. 267 (UNSTARRED), answered on 2025-12-02
Subject: Revival of Companies
Ministry: TEXTILES
Asked by: Shri Subbarayan K, Com. Selvaraj V

## REVIVAL OF COMPANIES

## 267. COM. SELVARAJ V: SHRI SUBBARAYAN K:

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

(a) whether the Government is considering a proposal to close down seven public sector enterprises the National Textile Corporation Ltd. and its five subsidiaries and British India Corporation Limited;

(b) if so, the financial position of these companies during the last five years;

(c) whether Government has taken any steps to revive these companies and if so, the details thereof with result;

(d) the number of employees/workers employed in these companies; and

(e) whether employees of the said companies are being paid their salaries regularly and if so, the details thereof?

## उत्तर

## ANSWER )

## वस्त्र राज्  य मंत्री ( श्री पबित्र मार्घेररटा

## THE MINISTER OF STATE FOR TEXTILES (SHRI PABITRA MARGHERITA)

(a) & (b): The  Committee  of  Group  of  Officer  (CGO)  constituted,  under  the  chairpersonship  of CEO, NITI Aayog, in its meeting held on 27.01.2022 recommended closure of British India Corporation Ltd.(BIC)  and  on  4.4.2022  recommended  the  closures  of  National  Textiles  Corporation  Ltd.(NTC) alongwith its 23 mills.

(c): In the  year 2002, Board for Industrial and Financial Reconstruction (BIFR) had sanctioned the revival scheme for NTC as per which 53 mills were proposed to be modernized by NTC. However, this revival scheme was later modified, first in the year 2006 and then in the year 2008. Since then, 23 mills were made operational by NTC. However, operation of these mills were suspended due to declaration of Nation-wide lockdown on 25.03.2020.  Subsequently, with the ease of lockdown restrictions, operation of some of the mills were resumed but could not be sustained after 2021.

In  so  far  as  the  BIC  is  concerned,  owing  to  continuous  losses,  BIC  was  referred  to  the  Board  for Industrial  and  Financial  Reconstruction  (BIFR)  in  1991  and  was  declared  sick  in  1992.  The  Cabinet approved a revival scheme on 21.11.2000 at a cost of Rs.211 crore. The cost of the scheme was to be met by  sale  of  surplus  land  and  assets.   BIFR  sanctioned  the  draft  rehabilitation  scheme  of  BIC  on 18.12.2002,  which  was  to  be  implemented  within  a  period  of  two  years.  However,  the  sale  of  the properties  of  BIC  could  not  materialize  as  permission  for  conversion  of  leasehold  /nazul  land  into freehold was not granted by the Government of Uttar Pradesh. The production activity stopped in BIC in 2012.

(d): The present numbers of employees/workers in NTC  and its five subsidiaries (as on 30.09.2025) are 8301. As regards BIC, the same as on 01.11.2025 is 201.

(e): So far  as  NTC  is  concerned  full  salaries  and  wages  have  been  paid  to  all  Industrial  Dearness Allowance (IDA) employees and workers required for essential services up to January, 2025 and 25% amount of interim relief have been paid for the month of February, 2025. The  remaining workers were paid 100% of their wages up to June, 2023, 50% of their wages till January, 2025 and 25% amount of interim relief have been paid for the month of February, 2025. Five Subsidiary companies have paid the salaries as of 31 October, 2025.  As regards BIC, salary has been paid upto March, 2025.

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