Government will soon take a call on the closure of National Textile Corporation (NTC)!
NTC has 23 mills with obsolete technology and has remained non-operational. Notably, it has 7,825 employees working/on the rolls at its mills.
Inter-ministerial consultations are underway on the likely closure of the ailing NTC. As per media reports, NTC’s land may be monetised.
Unavailability of working capital and other financial constraints are the main reasons causing the operations in all NTC mill units to remain under suspension now.
Though NTC made profits due to monetisation of land in FY ’17, it has been incurring operational losses since FY’07.
Rs. 1,646 crore has been spent on the modernisation of its mills under the revival scheme. However, despite such an infusion of funds, the corporation has not been operationally profitable, partly due to the rise in raw material costs.
Employees are being paid wages and statutory dues as per mutual agreement between the management and representing workers of the mill.
Media reports quoted Government officials, “The Cabinet will take up the NTC closure after the consultation process is over.”
