The National Textile Corporation (NTC) is all set to expand operations in Tamil Nadu by taking over two closed State cooperative mills. An NTC official here told The Hindu on Saturday that the corporation now had seven textile mills in Tamil Nadu, employing about 5,000 people.

The closed cooperative mill at Dharapuram was on a 53-acre plot and the Kancheepuram mill on 30 acres. The NTC would invest over Rs. 300 crore to start an integrated textile production facility (spinning, weaving, and processing) at Dharapuram and a medical textiles unit at Kancheepuram.

The proposal was to start the new facilities in 2011-2012. The integrated unit planned at Dharapuram would have 1.5 lakh spindles, 48 shuttle-less looms and a processing unit with zero effluent discharge system.

The NTC currently has 2.14 lakh spindles in the seven mills and would add 33,000 spindles at the Kaleeswara B and Pioneer Mills, located near Madurai. The official said NTC had invested Rs.110 crore so far to modernise the existing mills in the State, as part of its revival plan.

The turnover for 2010-2011 in the southern states was expected to be Rs.580 crore. Of this, nearly 60 per cent would be from Tamil Nadu.