Ministerial panel on mill land sale gets extension

While the GKSS is opposed to the sale of surplus mill land since past permissions for sale have not helped revive or modernise sickmills, the Rashtriya Mill Mazdoor Sangh (RMMS) which is the officially recognised union, is not totally opposed to land sale. Rane intends to meet all the unions — recognised and otherwise — this week.

The sale of surplus land linked to the revival and modernisation of mills has its roots in the Development Control Rules of 1991 and the revival package worked out by the Board for Industrial and Financial Reconstruction (BIFR). The DC Rules allow sale as long as the owner parts with one-third to the Brihanmumbai Municipal Corporation and one-third to the Maharashtra Housing and Development Authority (MHADA).

However, Manohar Joshi as chief minister amended the one-third formula to take into account the workers’ demands. The suggested revised formula meant that the surplus land would be divided into four parts with one each to the owners, workers or unions, MHADA and BMC. But the Joshi government was unable to decide, in principle, on the issue of allowing land sale. Several applications are pending withthe government.

Meanwhile, mill owners led by Hiren Shah, president of the Bombay Mill Owners Association, also met Rane today. The delegation briefed him about the pending proposals and the problems encountered by the industry in Mumbai. Their contention is that high water charges, sales tax and octroi make it financially unviable for the mills to function in the city. They demanded that the concessions given to industries in backward areas be extended to them as well. Rane has sought a comprehensive proposal from the Association within eight days.