Uncertainty continues over operation of National Textile Corporation (NTC) mills in the State, according to trade union leaders here.
The Union Budget presented by Finance Minister Nirmala Sitharaman on Wednesday proposes allocation of ₹220 crore as “support to PSUs”. According to a note on Demands for Grants 2023-24, the support to PSUs is for closure of business operations and grant of VRS to the employees of PSUs under the Ministry of Textiles. An official in the Ministry said the amount is for NTC and British India Corporation.
However, trade union leader T.S. Rajamani says that the NTC mills need nearly ₹1,000 crore to give VRS to its workers. The mills remain shut since 2020 when the government announced lockdown to control spread of COVID-19. In Tamil Nadu, seven NTC mills provide employment to almost 5,000 people. “We are told that of the ₹220 crore, ₹120 crores will be for NTC and it is a long pending payment from the government to the NTC. So, uncertainty continues over operation of the mills,” he said. The trade union leaders plan to meet Union Textiles Minister Piyush Goyal to get a clear picture.
