This was announced by Union textile minister Kanshiram Rana, who was in the city to attend an interactive session jointly organised by the Merchants Chamber of Commerce and Indian Jute Mills Association (IJMA).

In an impromptu press conference after the session, Rana told reporters that the revival plan will be ready within a short time. "The strategy has divided the 119-odd mills into three categories. The first are the profitable and viable ones, the second are the unviable ones and the third category of units need some rationalisation of workforce," he said.

According to Rana, only 30 to 40 NTC units are running profitably and the others are making losses. The Union government is paying around Rs 500 crore as salary every year to over 1 lakh workers.

"Ourproposal for reviving NTC has been sent over to the Union finance ministry and other related ministries. Once it is cleared it will go to the Cabinet for the final clearance," Rana said.

Earlier, while addressing members of the chamber and IJMA, the minister mentioned about the recently formed technology upgradation fund of Rs 25,000 crore, which can be accessed by the textile industry. Industrial Finance Corporation of India has been appointed the nodal agency and against specific modernisation proposals, money will be loaned out at a reduced interest rate -- five per cent below the existing PLR.

After giving a detailed picture of the jute industry, Rana said various steps are being taken to broaden the use of the jute fibre. "There have been continuous efforts to broaden the usage of jute and make it more attractive. Besides, innovative product development procedures and marketing strategy are also being worked out to make jute the fibre of the 21st century. The jute industry and trade will have a bigrole to play in achieving the export target projection of Rs 1,120 crore at the end of the Ninth Five-Year Plan," the minister said.

IJMA chairman Sanjay Kajaria in his address was critical of the directorate of sugar, who allowed the sugar companies to pack up to 20 per cent of their products in non-jute materials.

"The directorate of sugar under the food ministry has gone a step further and allowed the sugar industry to use non-jute materials to the extent of 20 per cent on the plea that A Twill jute bags for packing sugar are in short supply, which is totally incorrect," Kajaria said.