The proposal envisages division of surplus land possessed by city textile mills into four parts -- one-fourth each for the Mumbai Municipal Corporation (MMC), Maharashtra Housing and Area Development Authority (Mhada), Mumbai Metropolitan Region Development Authority (MMRDA) for the welfare of workers and the mill.

Mantralaya sources told The Financial Express that as per the new policy, the surplus land will be allowed for use for residential, commercial and office purposes. The mill will get the transfer of development right (TDR) in situ for the one-fourth share each surrendered to MMC and MMRDA. However, in case of excess land surrendered to Mhada, the mill will have to use its TDR in suburbs.

At least 70 per cent workers from the concerned mill willbe entitled to submit a proposal on the use of land reserved for their welfare to the state government which will take a final decision on it. The government wants this land to be used for the housing societies of mill workers.

The revised policy says that the height of the buildings on the one fourth land possessed by the textile mill should not exceed 24 meters and the mill owner should get the outline development proposal cleared from the government.

The government proposes to set up a high-level monitoring committee to see if there was proper utilisation of funds accrued from the sale of land and whether the modernisation and revival scheme was cost-effective. The committee which will be headed by the chief secretary will comprise secretaries from industries, textile, labour and housing. The principal secretary for urban development will be its member secretary, while the non-government members will be from textile mill, trade unions and noted citizens.

The government has come under severe criticismfrom the Girni Kamgar Sangharsh Samiti and the Millowners Association for the delay in clearing the revised land-sale policy. The samiti had demanded the resignation of chief minister Manohar Joshi, schools education minister Sudhir Joshi, industries minister Leeladhar Dake and cultural affairs minister Pramod Navalkar.

These ministers had assured that they would study the revised proposal and give their opinion to the chief minister this week so that it would be possible to take up the issue in the next cabinet meeting.

It may be mentioned here that the present provisions under Development Control Rule no 58 were applicable for the development of sick and closed textile mills, modernisation of such mills and use of excess mill land. It will be binding on the textile mill to surrender one-third each to the MMC and Mhada, and retain one-third for it if the land will be used for residential purposes.

However, the investigations carried out by the cabinet sub-committee and textiles department showed thatKhatau Mills, Modern Mills, Kamala Mills, Raghuvanshi Mills, Sriram Mills had allegedly violated the DC Rules even during the ban imposed by the state government for land development. The committee was also of the view that the mills did not pay proper attention on the protection of workers' interests.