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India: Centre, state reach understanding on textile millls |
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2004-7-28
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Setting-up of a National Institute of Fashion Technology (NIFT) centre in Lucknow may now become a reality as the Central and the state governments have finally agreed to sort out the contentious issues relating to the closure and rehabilitation of sick mills of National Textile Corporation of India and British India Corporation (BIC) within two months.
A decision to this effect was taken at a high-level meeting between chief minister Mulayam Singh Yadav and Union textile minister Shanker Singh Vaghela on Monday evening.
"Both the governments have already put forward their views on Rs 498.26 crore BIFR-approved scheme for the NTC mills.
Officials have now been directed to prepare the final draft for its execution," said an industrial development (IDC) department official.
The issue was hanging fire between the two governments for the past many years. During his meeting, the Union textile minister sought an early decision on issues pertaining to waiver of power, water tax, house tax and other dues and exemption in stamp duties and trade tax on change of land use.
The chief minister is learnt to have given green signal to the BIFR proposals directing IDC officials to sort out the issues to get an approval from the Cabinet within two months.
Under the proposals, the Board of Industrial and Financial Reconstruction has sought closure of nine out of 11 NTC mills while allowing rehabilitation of Swadeshi Cotton Mills in Naini and Mau. About 6,000 employees of these sick units have already been paid VRS and wages while others are in queue for the same. Mills which would be closed include Muir Mills, New Victoria Mills, Atherton Mills (all Kanpur), Bijli Cotton Mills (Hathras), Shri Vikram Cotton Mills (Lucknow), Rae Bareli Textiles (Rae Bareli), Lord Krishna Textiles (Saharanpur) and Laxmi Rattan Textiles.
These closed units are spread in an area of about 200 acres. As per BIFR proposals, an amount of Rs 323.17 crore would be generated through sale of assets which include land and scrap of old machinery to support the package and clear outstanding dues of employees and creditors.
But the state government did not give its nod without extracting favours from the Centre as the latter''s move may cause a setback to industrial environment of Uttar Pradesh. The state government has urged the Centre to set-up NIFT in Lucknow and National Centre for Testing Special Vehicles Equipments (NCTSE) at Rae Bareli. Besides this, UP is also planning to realise Rs 100 crore for NTC and Rs 50 crore for BIC as conversion and other charges. "The Union minister has agreed in principle to the state government''s proposals," claimed the officer. |
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