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Revived New Bhopal Textile Mills of National Textile Corporation Inaugurated

Jul 23, 2013 10:18 IST

The Union Minister of Textiles, K Sambasiva Rao on 22 July 2013 inaugurated the New Bhopal Textile Mills of National Textile Corporation (NTC) in Bhopal. The mill was taken for the purpose of revival as well as modernisation along with the BurhanpurTapti Mills in Burhanpur.

It is important to note that textiles sector is the second biggest employment generator in India after agriculture. According to the approved scheme of Board for Industrial and Financial Reconstruction (BIFR), in the first phase, National Textile Corporation Limited replaced 16848 spindles and commissioned 25200 new spindles in the year 2008 at the cost of 26.42 Crores Rupees. This led to an increase in the monthly production from 1800 kilograms per day to 5000 kilograms per day. This meant that despite providing Modified Voluntary Retirement Scheme (MVRS) to surplus workers, around 380 workers started getting wages every day.

The National Textile Corporation Limited (New Delhi) also approved the second phase of modernisation for the New Bhopal Textile Mill. In its second phase, the Head Office approved sanction of 81 crore Rupees, which will help in modernisation of the machines. This would eventually help in increasing the production from 5000 kilograms per day to 14000 kilograms per day. This implies that from present sustenance of 380 workers, the mill will be able to sustain the 650 workers every day. The mill has also obtained ISO Certification.

Background

Under Nationalisation Act 1974, National Textile Corporation Limited (Madhya Pradesh) took over seven mills which were making losses. The Bhopal Textile Mills was one of these. Because of high labour cost as well as old machinery, all these mills were running into losses continuously. The seven mills were registered under BIFR. Under approved scheme of BIFR, five of these seven mills were closed as unviable units and the remaining two mills i.e. New Bhopal Textile Mills in Bhopal and BurhanpurTapti Mills in Burhanpur were scheduled for modernisation as well as revival.

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