Business & Economy

NTC to e-auction surplus lands of two mills in Indore, Bangalore

NetIndian News Network

New Delhi, October 17, 2010

After netting in nearly Rs 2000 crore through e-auctions of two plots of surplus land in Mumbai, the National Textiles Corporation (NTC) has decided to put on sale two more properties - one in Bangalore and the other in Indore.

A press release from the public sector company said it would put on the block 16.57 acres of surplus land of the Malwa United Mills in Indore throug the e-auction route with a reserve pice of Rs 60 crore from October 25-27. The tenders to shortlist the participants in the three-day auction will be opened on October 18.

Another lot of 1.703 acres of Minerva Mills in Bangalore will be up for grabs from November 15 to 17 and the reserve price has been fixed at Rs 50 crore for this property. The tenders inviting interested parties for the e-auction have been already invited.

"For the first time in the history of Indian PSUs, we held the highly exciting e-auctions in July and August and went to create history of sorts, from ensuring cent per cent transparency to reaping the best prices. We definitely hope to replicate rich gains, though this time the properties are comparatively smaller,’’ NTC Chairman-cum-Managing Director K Ramachandran Pillai said.

"Though we have fixed Rs 110 crore for the two lots, we expect double the amount of the reserve price, going by the trends in the last two auctions, especially after witnessing neck-to-neck fight in the final moments between the contestants,’’ he said, adding that the company is planning at least six more online auctions during the current fiscal.

Indiabulls Infrastructurehad bagged both the properties in Mumbai put up for auction by NITC recently. It bagged 8.38 acres of Bharat Textiles Mills land for Rs 1505 crore, against a reserve price of Rs 750 crore. It also won the 2.39 acre Poddar Mills Process House land for Rs 474 crore against the serve price of Rs 250 crore.

Incidentally, Indiabulls had bought a lot from NTC from its Swadeshi Mills, Indore property sometime back in 2007 for Rs 15.32 crore through manual auction. The plot now on sale, on the Dewas Road, makes it further attractive for the builders as 25 acres of land nearby has been already reserved for a convention centre. NTC has a total of 104 acres of surplus land here and only 20 acres have been sold so far.

The lot of Minerva Mills on the Magadi Road in Bangalore is prime land as it is situated just one km from the Railway Station.

NTC, which is on a modernisation drive, is hoping to mop up around Rs 8000 crore more, 60 per cent higher than the previous target in the wake of record results of the two e-auctions, by disposing the surplus lots during this fiscal, to part finance the restructuring of the company. It has about 1,300 acre of surplus land in various cities, such as Mumbai, Bangalore, Indore and Coimbatore.

After closing down as many as 77 unviable units over a period, NTC has launched an ambitious Rs 9102-crore revival package for 24 mills, with the private sector, setting itself on the path of recovery. It has already sold land worth Rs 6000 crore, including the recent sale of land of two mills through e-auction. It has already spent nearly Rs 900 crore and completed the moderinisation of 18 mills. The Corporation is setting up four greenfield projects and modernising two other mills. The target of the modernisation and diversification plan is to increase the current 9 lakh spindles to 14 lakhs by 2014-end, the release added.