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Govt okays revised NTC revival strategy

The government has approved a revised turnaround strategy for NTC involving modernisation of 79 mills at an outlay of Rs 20.06 billion.

According to a media statement, the funds for modernisation were to be raised from sale of surplus lands and assets of NTC mills. This revival plan has been placed before the Board for Industrial and Financial Reconstruction since eight out of nine subsidiaries have been referred to the body where the matter is pending. However, the sale of land and assets could not be effected.

Major portion of such proceeds have to be generated from sale of surplus land/ assets situated in the Bombay mills of NTC for which the state government clearance is still awaited.

On the basis of a unit-wise viability study made by NTC, the government is considering a revised turnaround strategy for the viable mills of NTC, keeping in view the BIFR norms of the net worth of these mills turning positive within the period prescribed by body. The interest of the workers will be kept in view in the revival plan.

UNI