www.expressindia.com - Weather | Horoscope | Stocks | RSS
expressindia web city
HomeBlogsCricketAstrology TendersClassifieds Reader Comments Hotels
Sign In / Register | Archive
Expressindia » Story

NTC to revive 3 cotton mills

Font Size

Express News Service

Posted: Aug 13, 2008 at 0302 hrs IST

Kolkata, August 12 The Centre has rejected the West Bengal government’s proposal for setting up two cotton mills and has instead decided to revive three defunct cotton mills under National Textile Corporation (NTC).

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.

The corporation’s modernisation plan is intended to tap the growth in the $ 47 billion or Rs 1.98 trillion textiles industry, which is expanding 8 to 9 per cent annually.

Discuss this story on expressindia forums
Post Comments
Name* Email ID*
Subject* Country*
Message*
Characters remaining
 
TERMS OF USE: The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).
I agree to the terms of use.

Latest News

Business

Showbiz

Sports

CWG scam: Delhi HC grants bail to Games chief Suresh Kalmadi

Rushdie goes silent on Twitter, no hints about his India visit

NRHM scam: CBI raids 40 locations, files 3 new cases

Orissa Dalit gangrape: Charged with sheltering accused, agriculture minister resigns...

'Martin Luther King was shocked after being called untouchable in India'

Narendra Modi's 'pranks' sparked 'constitutional mini-crisis': Judge

Stuck in door, man dragged by train to next Metro station

More
© 2011 The Indian Express Limited. All rights reserved
Advertise With Us | Privacy Policy | Feedback | Express Group | Site Map