A revival package of Rs 1,200 crore for restoring the Kolkata-based National Jute Manufacturers Corporation will come up at the Cabinet committee of economic affairs meeting on Friday. The board for reconstruction of public sector enterprises approved the Rs 1,200 crore revival plan and another Rs 6,000 crore has been approved towards waiver of loan and interest for capital restructuring. The company has been non-operative since 2001.
According to sources, the revival plan of the company has been on the Cabinet?s agenda for over a year. The jute company operates six plants, five of which are in West Bengal and one in Bihar.
The Cabinet note was mooted by the ministry of textiles. A senior company executive of National Jute Manufacturers Corporation told FE that the firm was hoping for a quick solution. The company has urged that at least three of its six dysfunctional plants be restored.
?There has been no activity in the plants for almost 10 years now. But if a revival plan is complete then production can start soon,? the company official said. However, he added that though all workers have been remunerated for their services, no payment has been sanctioned yet for the senior officers of the company.
The officers had in fact approached the Calcutta High Court. A pay committee was subsequently constituted by a court order. This committee consisted of company officers and officials from the finance ministry and textile ministry. ?The committee?s report said that an additional Rs 100 crore should be released by the central government for the officers? payment,? the company executive said.
The matter would be taken up separately by the ministry of textiles.
This is the second Cabinet hearing on the revival package for the company. In 2005 the government had approved Rs 978 crore for VRS, liquidating statutory arrears, gratuity and secured liabilities for it?s close to 14,000 workers.
In December 2009 the India Jute Mills Association had written to West Bengal chief minister Buddhadeb Bhattacharjee demanding industry status. The association also demanded that the government replace the multiple labour unions with one, which would be the sole bargaining agent. The West Bengal government had withdrawn the industry status from the jute industry in 2006.