MUMBAI, Aug 25: The Union government has castigated the alliance government in Maharashtra on its decision to permit three private textile mills in Mumbai to sell their land, especially when similar proposals by the sick National Textile Corporation mills were put on hold.

Rukmini Haldea, joint secretary, Union Textiles ministry, in a letter dated August 12, has also expressed displeasure over state chief minister Manohar Joshi's statement in this connection in the media. She also wondered why "step-motherly" treatment is being meted out to the NTC mills.

The proposals by the NTC mills have been pending with the state government since 1992 and the ministry was optimistic of revenue generation of Rs 2,500 crore through the sale of land by the NTC mills. Haldea has sought a clarification from the state government asking it to make its position clear on this vexed issue.

This letter has come in the wake of a recent controvery over the state government's decision to allow sale of land for industrial use under 58 (1) (a) of Development Control Rule by Khatau, Modern and New Great Eastern Mills. The government had to sanction the sale of land by these mills following an ultimatum by the Board for Industrial and Financial Reconstruction (BIFR).

Interestingly, in its clarification, the state government made it clear that it had merely lifted the ban imposed on these mills by the urban development department on February 29, 1996, for carrying out land development. The government said the proposals of these mills for sale of land were cleared by the previous Congress government and not by it.

The government reiterated that it had merely lifted the ban and not given a fresh clearance for sale of land by these mills.

On the proposals by NTC for its mills, the government said these proposals were under serious consideration.

Meanwhile, the state cabinet on Monday deferred its decision on lifting the ban on land development by Matulya Mills due to major differences between the Shiv Sena and the BJP. Though the Sena has given its consent, the BJP has yet to make its stand known on this contentious issue.

The issue, which was listed on Monday's cabinet meeting agenda, was ultimately dropped and is likely to be taken up in the next meeting. Deputy chief minister Gopinath Munde (BJP) was conspicuous by his absence at the meeting.

The BIFR has cleared Matulya Mills' plan for sale of land on October 20, 1992, and the Congress government had given its clearance on November 3, 1992. The Mill was allowed to sell 17,797 sq mt of land. According to BIFR guidelines, the Mill is supposed to complete the land development programme by March 31, 1998.

Top sources said if the government fails to lift the ban imposed on carrying out land development, Matulya Mills may file a petition against the government in the BIFR.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.