Centre approves Jute Corporation revival planMarch 19th, 2010 - 6:06 pm ICT by ANI
New Delhi, Mar 19(ANI): Union Cabinet on Friday approved the proposal for revival of National Jute Manufactures Corporation (NJMC) Ltd
According to the revival plan the Corporation would restart production in three mills out of total six closed mills.
This will lead to an additional production of jute products and value addition.
The mills approved for revival are –Kinnison and Khardah in West Bengal and Rai Bahadur Hadrut Mill, Katihar, Bihar.
The Centre also proposed to shut down remaining three mills –National, Union and Alexendra.
The revival schemes provide for additional budgetary support in the form of interest free loan for implementation of revival scheme, to be refunded by NJMC to Government of India from sale of assets and internal generation.
Repayment of government loan would be the first charge on the receipts from sale of assets.
Centre has spent about Rs.1067.66 crore on giving voluntary retirement (VRS) to about 17000 workmen, 930 clerical staff apart from settling various statutory dues etc.
The total production capacity of three mills put together would be 82,500 MT of packaging material every year.
This will meet about 8 percent of the total demand of the jute packaging material by Government agencies. The revived mills are proposed to be operated as model modernized mill. (ANI)
Tags: budgetary support, clerical staff, crore, government agencies, government loan, government of india, interest free loan, jute products, New Delhi, njmc, packaging material, receipts, revival plan, revival scheme, union cabinet, value addition, voluntary retirement, vrs, west bengal, workmen