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Govt working out plans to revive sick textile mills and create more jobs

YarnsandFibers News Bureau 2014-12-02 10:00:00 – New Delhi

Government is working out plans to speed up revival of sick textile mills, including the National Textile Corporation (NTC), a move that will generate more employment. This assertion came from Textiles Minister Santosh Gangwar during his reply to a debate on the Textile Undertakings (Nationalisation) Laws (Amendment and Validation) Bill, 2014 in the Lok Sabha.

Gangwar said that to revive the mills they want to make a package which will evolve various way and means to run the mills. Their objective behind revival of sick textile mills is to create employment for more and more people.

Lok Sabha yesterday passed a bill to free the ailing National Textile Corporation, which has property worth Rs 25 lakh crore, from rent control laws.

The bill aims to ensure proper and effective implementation of the revival scheme for sick textile units. The bill, which replaces an ordinance promulgated some time back, was later passed by the House.

The proposed legislation aims at ensuring proper and effective implementation of the revival scheme for sick textile units.

According to the bill, there is a need "to protect public investment in the acquired textile undertakings to explicitly clarify the status of such vesting of the lease-hold rights in the central government.

NTC mills are turning around and government is committed to turning them around. NTC has properties worth Rs 25 lakh crore. The Bill would help to run the NTC smoothly so that in future there is no complaint against the runing of NTC, Gangwar said while moving the bill.

The ordinance route was taken to shield the NTC from rent control laws that have been used to evict its sick textile units from prime land in several cities.

Members in the opposition wanted the government to ensure that NTC land is effectively utilised given the fact that the land worth of NTC is more than that of gold.

During the discussion, members made a strong pitch to revive the ailing NTC mills to give a fair deal to workers.

Initiating discussion on the Bill, Ashok Chavan (Congress) said that the government should ensure better functioning of NTC, which has over 2,000 acres of land area under sick mills.

The mills should function in such a way so that it is competitive with the private sector and also hike the minimum support price (MSP) to cotton farmers.

Lack of modernisation turned the mills sick as joint venture mechanism has not worked for reviving them.

A public sector enterprise, NTC was set up in April 1968 for managing the affairs of sick textile undertakings in the private sector, taken over by the government. Starting with 16 mills, the number went up to 119. Out of the 119 mills, only 23 mills are currently operational.

Arun Kumar (RLSP) supported the bill and hoped that it will turn around the sector.

Nanabhau Falgunrao Patole (BJP) highlighted the poor condition of mill workers, who were laid off as mills closes, and how factory lands were sold to real estate developed for crores without former employees being given due benefits.

The Centre will work with the Maharashtra government to build "a very good memorial" of Babasaheb Ambedkar on NTC's Indu Mill land in Mumbai.

Members in the opposition wanted the government to ensure that NTC land is effectively utilised given the fact that the land worth of NTC is more than that of gold.

Among those who participated in the discussion were Kalikesh Narayan Singh Deo (BJD), Poonam Mahajan (BJP), Adhir Ranjan Chowdhury (Cong), K Srihari Rao (TRS) and KH Muniyappa (Congress).

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