Indian government to sell NTC

01 April 2022, Mumbai:

The Union government has decided to sell National Textile Corporation (NTC) to boost its operational viability.

For the last two decades, NTC has been incurring losses, though it made a technical profit of Rs 969 crore in FY17.

Several plans to revive the yarn and cloth manufacturer over the decades failed as it had to close down several unviable units.

ALSO READ Tamil Nadu trade unions urge for reopening of 'National Textile Corporation (NTC)' mills

The latest attempt to revive the corporation in 2012 involved a Rs 5,500 crore package by the then Board for Industrial and Financial Reconstruction (BIFR).

The package allocated funds for meeting expenses like clearing up outstanding statutory dues, one-time settlements (OTS) with financial institutions, interest payment and compensation under modified VRS.

RELATED NEWS SIMA: India to face a cotton shortage

Moreover, NTC also spent Rs 1,646 crore on modernization of mills under the revival scheme.

However, the fund infusion failed to revive the corporation as it faced a steep rise in raw material costs.

In FY20, the company reported a 13 percent rise in a net loss to Rs 350 crore.

The company’s turnover declined y 21 percent to Rs 850 crore during the year while its net worth fell by 20 percent to Rs 1,381 crore in FY20. 

Join our community on Linkedin