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Journalism of Courage
MUMBAI, MAY 31: The Congress-led Democratic Front government on Wednesday permitted the National Textile Corporation (NTC) to dispose 125 acres of surplus land that it owns in the metropolis to mobilise resources required for modernisation and revival of sick and closed units. However, it appears that the government was forced to take a decision on this issue and as such, it acted in a way keeping the interests of private mill owners in mind.
"Since the Board of Industrial and Financial Reconstruction (BIFR) had sought our views on the disposal of surplus land, we vacated the stay granted by the erstwhile Sena-BJP government on February 29, 1996 to facilitate disposal of surplus land," Chief Minister Vilasrao Deshmukh said after the weekly cabinet meeting.
Deshmukh said NTC has a total of 25 units in the metropolis on land admeasuring 275 acres, out of which 125 acres is available for disposal. "The disposal of surplus land will be governed by the Development Control rules. Under the rules, the NTC will be permitted to develop one third of the surplus land, while it will have to surrender equal land to Maharashtra Housing and Area Development Authority and Mumbai Municipal Corporation," Deshmukh said.
Deshmukh said his government will ask the NTC to utilise the entire fund generated by disposal of surplus land either in the metropolis or in the State. "We will insist on our proposal. If there is a need, we will take it up with the Centre," the Chief Minister added.
So far as the demand made by private textile mills is concerned, Deshmukh said a high level cabinet sub-committee headed by Textile Minister Ranjeet Deshmukh is examining the proposal. "I expect the committee to submit its report within 15 days. After the receipt of the recommendations, we will take a decision," he said.
A decade ago, the NTC had submitted a Rs 6000 crore proposal for disposal of surplus land for modernisation and revival of sick units in the country. The proposal for Maharashtra envisaged provision of Rs 2200 for modernisation of units, mostly in the metropolis. However, successive governments did not take a decision for obvious political reasons.
Even today, the cabinet took a decision following specific directive of the BIFR to communicate its views on the proposal submitted by the NTC. "The government had two options. Either allow disposal of surplus land or reject the proposal. If the proposal was rejected, then in future it would have become difficult for the state government to grant permission for disposal of surplus land for the private textile mills. Therefore, to oblige the private mill owners, the government granted permission to the NTC to sell its surplus land," a senior official said.
The cabinet also decided to give on lease the crisis-ridden spinning mill run by the Nagpur Weavers Cooperative Society for a period of 10 to 30 years. "Since it was a sick unit and also there was a demand from the workers, the cabinet decided to give it on long lease. Tenders will be floated for the purpose," the Chief Minister said.
On Tuesday, a delegation led by former Labour Minister Haribhau Naik had called on the Chief Minister to demand that since all experiments have failed, the unit should be leased out to protect the interests of the workers.
