GoM proposes a Rs 3,200 crore bridge loan for NTC

While the modalities of the bridge loan have not yet been worked out, sources said part of the loan would be given by the Centre and the rest by the financial institutions.

The land and property of the NTC would be mortgaged with the banks for raising the loans, sources said adding that the bridge loans would be repaid back from the proceeds of the sale of surplus land.

Rehabilitation of 119 NTC units based on sale of its surplus land has not taken off due to non-cooperation of state governments regarding the sale.

While Maharashtra has allowed NTC to sell only one-third of the surplus land, Madhya Pradesh has outrightly rejected sale of surplus land by NTC.

In a last ditch attempt to break the impasse, the centrehas created a special sub-committee comprising Textiles Minister Kanshiram Rana and Heavy Industries Minister Manohar Joshi to open a dialogue with Maharashtra government for sale of the entire surplus land of NTC in the state.

The Centre has also agreed to the state governments8217;mand to plough back proceeds from the sale of land to revive the NTC mills in the state, sources said.

The two Union ministers are expected to visit the statewith the proposal before the month end, they said.

If the proposal is not accepted the bridge loan optionwill be considered, sources said adding that the GoM would foward the bridge loan proposal to the cabinet.

Sources said the Centre has even proposed to theconcerned state governments to run the NTC mills on their own but none of the state governments have accepted the proposal.

The Centre on an average extends a budgetary support ofRs. 45 crore of which Rs. 35 crore is idle wages. Moreover, of the 119 NTC mills only 25 mills are working fully at present, while 51 are working partially and 43 mills are lying idle.

The Centre has not been successful so far in implementingany of its rehabilitation proposals. Way back in 1992 and later in 1995 the cabinet had approved a Rs. 2500 crore rehabilitation package which got stuck due to the inability of the mills to sell the surplus land.

Since over 80 per cent of the surplus land is located inMaharashtra, unless the state government agrees to the sale of land adequate funds cannot be raised for a rehabilitation package.

The six member GoM for NTC appointed earlier this yearincludes Labour Minister Satyanarayan Jaitya, Disinvesment Minister Arun Shourie, Information and Broadcasting Minister Arun Jaitley, besides Sinha, Joshi and Rana.