November 06, 2001

'19'

SUPER CYCLONE RAVAGED ORISSA COTTON MILL RESTARTS

    The Orissa Cotton Mill in Cuttack which was substantially damaged by super cyclone of 1999 restarted today. Speaking on the occasion of reopening of this mill in Cuttack today, the Minister of Textiles, Shri Kashiram Rana said that this mill is one of the 44 N.T.C. mills, which are proposed to be modernised and revived under the N.T.C. Revival Package. He disclosed that the Ministry is going to raise the capacity of this mill to 25,000 spindles so that it is able to manufacture quality yarn at reasonable prices for use by Handloom weavers in the State. In the coming next two years, Rupees six crores will be invested for the modernisation of the machinery after which the production value would likely to be increased to Rs. 26 crores per year. Mr. Rana expressed the optimism that all the 44 N.T.C. mills to be revived under the package would start earning profit from 2005 onwards and Orissa Cotton Mill is expected to make a profit of Rs. 3.48 crores per annum.

    Mr. Kashiram Rana also said that National Textile Corporation is one of the largest public undertakings in the country employing nearly 89,000 workers in 119 units. During the last three decades the Corporation faced many challenges due to obsolete machinery, lack of working capital, high cost of labour and competitive markets. Consequently, the Corporation accumulated losses and the mills were declared sick. The matter is pending before BIFR since last one decade, he said. Keeping in view the interests of the workers, Government decided on a unit by unit approach for revival of maximum number of units and closure of unviable mills with a decision to give attractive V.R.S. to nearly 42,000 workers of non-revivable mills, though BIFR has instructed to wind up the sick mills with this decision 44 mills will be revived whereas 60 mills will be closed. The Government has formulated a Rehabilitation Plan for the 8 sick subsidiaries of N.T.C. at the cost of Rs. 2993 crores whose breakup is as follows.

One Time Settlement Rs. 233 cr.
Statutory Dues Rs. 200 cr.
VRS Rs. 1030 cr.
Pressing Creditors Rs. 239 cr.
Modernisation Rs. 1291 cr.
Total Rs. 2993 cr.

    Other than this, Rs. 4133 crores will be accumulated by sale of land (Rs. 3153 crores) sale of assets (Rs. 355 crores) and wage support from Government (Rs. 625 crores). He further disclosed that Government of India has agreed to make these sacrifices for the revival of N.T.C.

    Waiver of Interest proposed Rs. 1865 cr.Conversion of loan into equity proposed Rs. 2774 cr.Wage support for two-year period Rs. 625 cr.VRS(NTC Gujrat) Rs. 181 cr.Budgetary support for payment of statutory dues in the mills proposed for closure Rs. 90 cr. Total waiver of damages on statutory dues Rs. 111 cr.Total Rs. 5646 cr.


    Mr. Rana reiterated that the present Government is committed to safeguard the interests of the workers and it has decided to enhance the exgratia under the VRS Package for those where no wage revision took place since 1987 and 1992 respectively. Government has also formulated a scheme for retraining and orienting surplus manpower so that the workers could settle in alternative vocations after taking VRS.

    Mr. Rana urged upon the State Governments to support the efforts of the Ministry of Textiles in implementing the Rehabilitation Plan for N.T.C.