5 Property Advisors For NTC Land Sale

New Delhi, July 28: | Updated: Jul 29 2002, 05:30am hrs
The government has appointed five consultants — Jones Lang Lasalle, Chesterton Meghraj, ICICI Home Finance, Sallmanns India and Knight Frank — for valuation and sale of National Textiles Corporation (NTC) mills’ properties, which are estimated to fetch Rs 3,638 crore.

Properties and surplus lands of about 100 units have been identified in various cities for sale. The sale will unlock about nine acre land in the prime locations in Delhi, 57.79 acre in Bangalore and over 280 acre in Mumbai. Other locations are Amritsar, Indore, Bhopal, Kanpur, Lucknow, Allahabad, Aurangabad, Ahmedabad, Kolkata and Coimbatore.

“NTC proposes to sell total land of unviable mills and surplus land of viable units to raise resources for financing the revival plan,” a senior textile ministry official said.

The consultants will be entitled to a 0.31 per cent commission on sales realisation. NTC will, however, not pay any valuation charge or advance to the consultants. As per the terms of the contract, the commission will be payable only after realisation of sale value. NTC may also withdraw any property from sale.

The government proposes to revive 53 mills with additional funds realised through sale of properties. “The government has decided to revive all viable units and close down non-viable mills. It has decided to offer VRS to affected staff,” sources said.

The Textile Research Association has carried out techno-economic viability studies for the mills. The report suggested revival of 53 mills and closure of 66 units. Eight NTC subsidiaries, which own 104 mills, have been already referred to BIFR. The board has approved revival of 27 mills in six subsidiaries, and it is yet to decide the proposal for two other subsidiaries.