Union textile minister Shankar Singh Vaghela said the Laxmi Narayan Cotton Mill and the Sodepur Cotton Mill will be revived via the joint venture route, while Aarti Cotton Mill will be revived by the NTC .

The decision to reopen the three NTC cotton mills is a part of the government’s modified revival scheme (MRS) for the NTC at a cost of Rs 5,267 crore. Vaghela said the MRS would be financed by a Rs 528 crore-interest-free loan from the Union government and a Rs 4,379 crore-fund that would be raised by selling land and other assets.

The NTC is reviving the Aarti Cotton Mill at a cost of Rs 65 crore. The mill, with a capacity of 30,000 spindles, will be commissioned in October, said K. Ramachandran Pillai, Chairman and Managing Director, NTC.

The corporation is reviving a total of 22 cotton mills across the country.

Vaghela said three investors have shown interest in reviving Laxmi Narayan and Sodepur Cotton mills.

“Whosoever gives the highest bid will be roped in as the JV partner,” Vaghela said.

He said that the NTC will hold 51per cent in the JV companies but the private sector partner would have a majority representation on the board.

Both mills will, however, have to create a value chain for sustenance but the plan for that will be drawn up later. The investment for this will be decided only after the JV partners are roped in, he added.