Tuesday, September 14, 2010

NTC to sell Minerva Mills land for Rs 50 cr

After garnering about Rs 2,000 crore from the sale of prime mill land in Mumbai, the National Textile Corporation (NTC) will put some of its property in Bangalore on the block in October.

The company would be selling 1.73 acres at the Minerva Mills in Bangalore through an e-auction.

"We have fixed up a reserve price of Rs 50 crore for Minerva Mill," NTC Chairman and Managing Director Ramachandran
Pillai said. The mill had become defunct.

The company is expecting double the amount of the reserve price, if not more from the auctions. The three-day process will start from October 25 in Indore, followed by the auction in Bangalore.

Last week, the company had invited tenders for the sale of land.

Recently, real estate major Indiabulls Infrastructure bagged NTC's 8.3 acres of Bharat Textile Mills land in Mumbai, for a whopping Rs 1,505 crore.

It also won the company's 2.3 acre Poddar Mills land for Rs 474 crore, paying almost double the reserve price of Rs 250 crore.

Industry experts said that the expected response for Indore and Bangalore lands would not be as high as the Mumbai auction as the financial capital typically commands higher rates. NTC would use the funds for modernisation and diversification.

"As part of this revival scheme, the company will set up one technical textile mills in Rajasthan and one in Coimbatore," Pillai said.

After the sale of Mumbai land, the company has revised its mop-up target for this fiscal by 60 per cent to Rs 8,000 crore.

The company has about 1,300 acre of surplus land in various states, such as Mumbai, Bangalore, Indore, Karnataka and Coimbatore.

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