New Delhi, December 9: National Textile Corporation (NTC) is negotiatingdirectly with parties against bids floated by it for divesting its 33.63 percent equity stake in the Kanpur-based nationalised textile mill, SwadeshiPolytex Ltd (SPL).NTC's fresh move is notwithstanding the fact that the price quotationsreceived by it against bids floated by it earlier for acquiring its equityholding were far below the benchmark set by the Industrial Development Bankof India (IDBI). The validity of the bids expired on August 31.
Confirming this, textiles ministry sources said that the NTC was evaluatingthe offers and would take a final decision in consultation with the IDBI andthe textiles ministry. IDBI has been engaged by the IDBI to scan the bidsand strike deals.
Initially, the date for receiving bids were fixed as July 31, which waslater extended by a month.
NTC acquired the stake in 1988 when the mill known as Swadeshi Polytex Ltdwas nationalised after a Supreme Court order. With such a largeshareholding, SPL is virtually under NTC's management. The public financialinstitutions have a 16 per cent holding in SPL, while the Swarup Group ofthe Paharpur Cooling Towers has 23.66 per cent and the public 27.22 per centin the company.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.