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Sunday, September 20, 1998

Millowners' body urges Maharashtra government to lift ban on land sale 

Sanjay Jog  
Mumbai, Sept 19: The Millowners' Association (MoA) has, in a fresh appeal, called upon the Maharashtra government to clear the redevelopment proposals submitted by certain private and National Textile Corporation (NTC)-run mills.

It has also sought speedy clearance of proposals allowing commercial development of up to 15 per cent and lifting of the ban imposed on February 29, 1996, on land development by city textile mills. MoA has, in a recent letter, demanded that textile mills be treated at par with other industries and be allowed to dispose of excess space which is no longer required.

The proposals submitted by eight private textile mills for sale of excess land have been pending since 1992. The list includes Ruby Mills (May 5, 1992, total area - 26,082 square metres and area to be developed 3,758 square metres), Piramal Spg & Wvg Mills (February 23, 1992; fresh application on March 6, 1993, 34,749 sqaure metres and 5,200 square metres), Crown Mills (division) Hindoostan Spg & Wvg Mills (May 31, 1994,28,609 sqaure metres and 3,800 sqaure metres), Victoria Mills (September 1994, 46,571 sqaure metres and 6,985 square metres), Simplex Mills (December 8, 1994, 36,533 square metres and 5,246 square metres), The Bombay Dyg & Mfg Co (March 22, 1995, 126,611 square metres and 17,109 square metres), Morarjee Goculdas Spg & Wvg Co, Sewree division (June 7, 1996, 77,711 square metres and 10,948 square metres) and Morarjee Goculdas Spg & Wvg Co, Lower Parel (July 31, 1996, total area 48,193 square metres and area to be developed 6,895 square metres).

Moreover, proposals submitted by the 19 NTC-run mills have also been pending with the government since 1994. The total surplus land to be sold by these mills was 577,169 square metres.

The MoA has said that the financial health of these mills (and others in general) has taken a severe beating. Though the study group headed by Charles Correa had submitted its report last year on integrated development of textile mill land, the government is yet to remove the banimposed on further construction activity on mill land and sale of excess land.

MoA says that construction of buildings even for the mill's own use has been affected. Moreover, the slump in the real estate market has worsened the situation.

MoA said that of the 35.70 lakh sqaure metres of land and premises granted for converting industrial to residential and commercial use, textiles have been granted less than 0.50 lakh square metres. It has sought government clearance for development under Development Control Rule 58 (2), applicable to the healthy mills going in for modernisation, and development of up to 15 per cent of land.

MoA has made it clear that further delays in clearing these proposals will lead to closure of more mills at a faster rate and also create a social and law and order problem. This will further reduce the strength of the 45,000-odd workforce.

"It is in the interest of the workers that the industry modernises itself to international standards so that it can face competition in theexport and local market. But this must happen without any further delay," MoAA said.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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