March 15, 2002

`19`

LOK SABHA

CLOSURE OF NTC MILLS

   There is no production activity in 42 mills of NTC (even prior to New Textile Policy) as the operations in these mills are sustaining heavy losses. The workers to these mills are however being paid wages.

    Efforts were made to run these mills on job work basis but there was no demand. TRAs conducted Techno Economic Viability Studies for these mills and established that 39 of these mills are not viable. Based on these reports, Operating Agencies of BIFR (IDBI/IFCI) proposed that these 39 mills should be closed as a part of the Rehabilitation Scheme under finalisation with BIFR.

    This was stated by the Minister of Textiles, Shri Kashiram Rana in reply to a question by Shri Laxman Giluwa and Shri Varkala Radhakrishnan in Lok Sabha today.