National Textile Corporation runs into losses in 2013-14

22 Jul '14

2 min read

National Textiles Corporation (NTC) has made profit in the year 2009-10, 2010-11, 2011-12 and 2012-13, but incurred loss during 2013-14.

The main reason for loss during 2013-14 has been due to increase in raw material cost by 10.55 % (i.e for Rs. 106.34 per/Kg (2012-13) to Rs. 117.56 per/kg (2013-14)), whereas sale rate of finished yarn increased by 2% only (for Rs. 211.77 per/Kg (2012-13) to Rs. 216.02 per/Kg(2013-14).

National Textile Corporation (NTC) has been implementing a revival scheme approved by Board for Industrial & Financial Reconstruction (BIFR) at a total cost of Rs. 9102 crore. Under this scheme, 78 mills have been closed down (Annexure–I), 22 mills are to be revived by NTC itself and 18 mills are to be operationlised through Joint Venture route. 2 mills have been taken out from joint venture list and revived by NTC itself.

Thus, 23 mills have been revived by NTC so far and one mill is slated to be set up as Technical Textiles unit in Rajasthan (Annexure–II). 5 mills are operational through JV route, (Annexure–III) remaining 11 mills are under arbitration as their Memorandum of Understanding (MoU) were cancelled on review. Under the scheme, 65000 employee approx were to be given Modified Voluntary Retirement Scheme (MVRS). 63295 employees have opted for MVRS at a compensation of Rs. 2378.75 crore so far.

National Textiles Corporation

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