Question : Revenue Loss from NTC Mills


(a) whether the Government is incurring revenue loss since National Textile Corporation (NTC) mills are lying closed;

(b) if so, the mill – wise and cost – wise loss incurred during the last three years;

(c) the efforts made by the Government to minimize and to check the said loss;

(d) the success achieved by the Government as a result of the said efforts made so far; and

(e) the reaction of the Government thereto?

Answer given by the minister

MINISTER OF STATE FOR TEXTILES
(SHRI AJAY TAMTA)

(a) & (b); Yes, Madam. The National Textile Corporation (NTC) has presently 28 working NTC mills (including 5 under Joint Venture) and 78 closed unviable mills under Industrial Dispute (ID) Act. Out of 78 closed mills, land and other assets of 29 mills have been sold to implement the revival scheme sanctioned by Board for Industrial and Financial Reconstruction (BIFR). While these mills were incurring losses, even prior to closure, the mill wise loss incurred during the last three years is given at Annexure-I.

(c) to (e); After closure of mills, to minimize the loss, following steps have been taken:-
i. continue MVRS benefit to employees of closed mills.
ii. reduce the power expenses by surrendering extra [power load to concerned State Electricity Boards.
iii. work has been outsourced after superannuation of regular employees.
Due to the above measures, the loss of these closed mills has reduced from Rs. 22.13 crores in 2012-13 to Rs. 19.21 crores in 2015-16, Rs. 10.41 crores in 2016-17 and Rs. 8.87 crores in 2017-18.The deployment in these 49 mills has reduced from 507 in 2012-13 to 189 in 2017-18.

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