Sale of NTC mills in Mumbai to resume soon

Sale of NTC mills in Mumbai to resume soon
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First Published: Tue, Jul 24 2007. 06 32 PM IST
Updated: Tue, Jul 24 2007. 06 32 PM IST
New Delhi: The process of selling closed mills of National Textile Corporation in Mumbai is expected to resume soon with the state-run company inviting bids for India United Mill in the next few days.
Of the 17 mills that NTC has in Mumbai, two each would be handed to the Maharashtra government and Mumbai administration.
“After transferring two mills each to Maharashtra Housing and Area Development Authority (MHADA) and Brihanmumbai Municipal Corporation (BMC), 11 mills would be available for sale to real estate developers,” a government source said.
United Mill would be the first to be put on block and the sale of NTC properties would be spaced out so that the company gets good price for its assets, the source added.
He said talks with Maharashtra government were centred on how to allow development of mill land for real estate purposes without impacting the state’s action plan to check frequent floods in the states.
Of the 116 NTC mills, only 40 are being revived and modernised. While 22 mills will be revived by the government, 18 would be handed over to private players.
Of the 22 mills, modernisation of 13 is progressing as per schedule, while location of four would be changed. Two mills will be developed on turnkey basis, while talks are on with Madhya Pradesh government for two other. In one mill, labour problems are holding back modernisation programme.
For the 18 mills, Expression of Interest has been received from real estate and textile firms like Alok Industries, Indiabulls Real Estates, Nitco Corporation, Alok Industries, Abhishek Industries, Alps Industries, Falcon Tyres and Liners India.
The government had raised Rs2,021 crore by selling five NTC mills in 2005.
Earlier, the government had plans to induct private players for 29 mills but as most of the employees of 10 mills opted for voluntary retirement scheme, it was decided to close them down.
Apollo Textile Mills, Gold Mohur Mills and New City Textile Mills are the other three mills in Mumbai that will be redeveloped in joint ventures with real estate developers and textile corporate houses.
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First Published: Tue, Jul 24 2007. 06 32 PM IST
More Topics: NTC | Textile Mill | Money Matters | Real Estate |