BIFR approves merger of NTC subsidiaries

THE BOARD of Industrial and Financial Reconstruction (BIFR) has directed the National Textile Corporation (NTC) to shut down its sick unit in the city and approved the merger of all nine subsidiaries of the NTC into the holding company.

THE BOARD of Industrial and Financial Reconstruction (BIFR) has directed the National Textile Corporation (NTC) to shut down its sick unit in the city and approved the merger of all nine subsidiaries of the NTC into the holding company.

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According to sources, the modified scheme presented by the NTC management to the BIFR in November 2005 was approved on March 28, 2006.

Sources said that during the time of NTC’s establishment, it was controlling five textile mills. At a later stage, a total 11 mills were brought under its control.

However, poor management and poor mordinastion activities forced the closure of at least nine mills of the NTC. Five of which were in Kanpur.

However, two mills which were identified as viable — Swadeshi Cotton Mill, Mau and Swadeshi Cotton Mill, Naini —by the BIFR in 2002 have been put in the category of Special Project Vehicle (SPV). It means that these mills will continue functioning with the NTC, said sources.

Accoriding to sources, 52 NTC mills are at present functioning in the country while the rest would be closed soon. Expressing the worries, the employees posted here at the headquarters said that now many of them would be shifted from Kanpur to far off places.