NTC lines up 1,000 more acres for sale

NEW DELHI: National Textile Corporation (NTC) will sell 1,000 acres at prime locations across the country by March 2008. The public sector enterprise has identified land in Mumbai, Bangalore, Kolkata, Kanpur and Indore that it intends to sell.

“The sale of land is expected to yield a minimum of Rs 3,000 crore,” NTC chairman KR Pillai said. NTC has set a minimum target of Rs 1,500 crore to be garnered through sale of land this year. Tenders for the sale are expected to be floated soon.

NTC has already sold assets worth Rs 3,200 crore. Of this, it has received Rs 2,400 crore through sale of six properties in Mumbai alone. During 2004-05, NTC sold surplus land worth Rs 110.12 crore while, in 2005-06, it earned Rs 2,196.82 crore from sale of surplus land. In all, 47 properties have been sold.

By March 2008, NTC expects to complete modernisation of 22 of its mills, 13 of which would be modernised by the end of the year. Orders for imported and indigenous machinery have been placed. The enterprise has set aside Rs 530 crore for investment in machinery. NTC has not offered voluntary retirement scheme option to employees of the 22 mills since it is expected they will continue to work in the mills.

Eighteen other mills are proposed to be modernised through private sector participation in joint ventures with NTC. The government is hoping to bring in better management through private expertise. While NTC will hold 51% stake in the JV, the private participant can hold 49% stake.