National Textile eyes Rs750 cr from Mumbai mill sale

National Textile eyes Rs750 cr from Mumbai mill sale

New Delhi: Aiming to garner a minimum of Rs750 crore, state-run National Textile Corporation (NTC) on Monday said it will sell 8.38 acres of prime land in Mumbai, via e-auction.

National Textile Corporation had earlier invited sealed tenders for sale of Bharat Textile Mills, located in Lower Parel, one of the prime areas of the land-starved city.

“The sale of the property is now proposed by e-auction mode in lieu of sealed tenders invited earlier...," NTC said.

The firm had earlier said that it would sell 60 acres of Mumbai mill land in phases within the current fiscal to part-finance the company’s Rs9,102 crore expansion, diversification and modernization programme.

The Lower Parel land is ideal for IT park, hospitals, hotels and educational institutions besides others, it said.

NTC has nine mills situated in prime locations of the country’s financial capital, including Prabhadevi, Worli and Lower Parel.

While the reserve price (starting price) of the Bharat Textile Mills has been fixed at Rs750 crore, industry sources said NTC could fetch higher going by the company’s previous experience.

In 2005, a NTC mill plot at Worli was sold for 274% over and above the reserve price.

Once NTC was referred to the Board for Industrial and Financial Reconstruction (BIFR), it has come out of the red and drawn out a plan to achieve a turnover of Rs2,014 crore by 2014, from Rs524 crore in 2008-09.

NTC originally had 119 mills, out of which 77 were closed under the Industrial Disputes Act. Two have been handed over to the Pondicherry government and five are being revived through joint ventures with Pantaloons, Alok Industries and Bhaskar Industries.