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NTC to finalise joint venture partners soon to revive 16 mills

COIMBATORE: The National Textile Corporation (NTC) will finalise joint venture partners by the end of this month to revive 16 of its mills in the country.

The NTC Chairman and Managing Director, K. Ramachandran Pillai, told The Hindu that 14 private companies had responded to the joint venture proposal rolled out earlier this year. However, the corporation recently modified some of the joint venture guidelines and called for revised offers from the respondents. The last date for submission of the offers was October 4.

According to the new guidelines, the identified mills would be leased out for 33 years (earlier it was 15 years). Also, the partner could use the entire mill area for any textile related activity. Mr. Pillai explained that though NTC would have 51 per cent share in the special purpose vehicle that would be formed to run the mill, the partner would have management control. The partner could be a single company or a consortium of companies and they could be joint venture partners for more than one mill too.

The partners to be selected were expected to pump in nearly Rs. 500 crore (totally) over a period into these units. Most of the 14 private companies that had submitted expression of interest to the joint venture proposal had textile exposure. Once the partners were finalised, they would start investing in the select mills. Mr. Pillai said of the 40 mills slated for revival, it would revive 22 mills itself and the remaining would be revived through joint venture. Expression of interest was sought only for 16 mills since NTC was yet to take a decision regarding two mills in Coimbatore.

In the other 22 mills that were identified for revival by NTC itself, modernisation would be completed in 15 mills by the end of March 2008, he added.

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