01 April 2022, Mumbai:
According to media reports, the Union Government is considering selling the loss-making National Textile Corporation (NTC). The sale will be submitted to the cabinet for approval soon.
The Ministry of Textiles owns the NTC, which was founded in April 1968. (MoT).
NTC has been losing money for the past two decades and more, but it made a technical profit of Rs. 969 crore in FY17 after accounting for capital gains from the sale of a slew of prime properties and land parcels in Mumbai and elsewhere.
ALSO READ Tamil Nadu trade unions urge for reopening of 'National Textile Corporation (NTC)' mills
According to rumors in the media, the Union Government is considering selling the National Textile Corporation, which is losing money (NTC). The sale will be presented to the cabinet for approval in the near future.
The NTC, which was created in April 1968, is owned by the Ministry of Textiles. (MoT).
NTC has been losing money for the past two decades and more, according to a report published by Financial Express, a leading business daily, but it made a technical profit of Rs. 969 crore in FY17 after accounting for capital gains from the sale of a slew of prime properties and land parcels in Mumbai and elsewhere.
RELATED NEWS SIMA: India to face a cotton shortage
NTC's net loss for the fiscal year 2019-20, the most recent year for which financials are available, was Rs. 350 crore, up 13% year on year.
Its turnover in the same fiscal year was Rs. 850 crore, down 21% from the previous year, and its net worth was Rs. 1,381 crore, down 20% from the previous year.
The most recent attempt to resurrect the corporation came in 2012, when the then-Board for Industrial and Financial Reconstruction recommended a package (BIFR).
RELATED NEWS
Around Rs. 5,500 crore was paid as part of the package to cover a variety of costs, including overdue statutory dues, one-time settlements (OTS) with financial institutions, interest payments, and compensation under the amended VRS.
Under the rejuvenation project, NTC has invested Rs. 1,646 crore in modernizing its mills. Despite this inflow of cash, the Corporation has yet to become operationally profitable, owing in part to rising raw material costs.
Join our community on Linkedin
CREDITS: Financial Express & Apparel Resources.
