Revival of NTC Mills

So far National Textile Corporation (NTC) has closed 67 unviable mills under Industrial Disputes (ID) Act, 1947 as per rehabilitation scheme sanctioned by the Board for Industrial and Financial Reconstruction (BIFR) and approved by Government. At present, there is no proposal to revive, reopen and modernize the above closed mills under public-private partnership. The original Revival Scheme was approved by the BIFR subsidiary-wise in April, 2002. Subsequently, a Modified Scheme (MRS-08) for NTC has been approved by BIFR on 05.09.2008. As per MRS-08, the period of implementation of revival scheme for NTC has been extended upto 31.03.2009. The total cost of MRS-08 is Rs.9102 crores which is self financing. The resources are to be generated by sale of assets of closed mills and surplus assets of viable mills. Through MRS-08, BIFR has approved closure of 12 more mills. MRS-08 has also recommended writing off of Government loan and waiver of interest thereon, as on 31.03.2007. In addition, various reliefs and concessions on Income Tax, Wealth Tax, Capital Gain Tax etc. have also been approved by BIFR. This information was given by the Minister of State for Textiles, Shri E.V.K.S. Elangovan in a written reply in the Rajya Sabha today. *******