Sale of 3 assets to infuse fresh life into sick AFT Mills

Published: 22nd April 2013 10:27 AM  |   Last Updated: 22nd April 2013 10:27 AM   |  A+A-


The management of the state-run Anglo French Textile (AFT) Mills is planning to revive the defunct mill and run it through the sale of its assets. This decision of the management is waiting for government approval.

Speaking to mediapersons here on Staurday,  chairman of the AFT Mills V Bhalan said with finance being a problem, the management has decided to mobilise funds through the sale of its assets at Pattanur, Thirubuvanai and Thengaithtitu instead of declaring lock out.

A proposal in this regard has been submitted to the government for its approval.First the proposal has to be approved  by the Cabinet and then the Lieutenant Governor and also the Ministry of Home Affairs, said Bhalan.

The management also proposed to secure a grant of `500 crore from the Government of India  to modernise the mill. A project proposal for modernisation has been made and Chief Minister Rangasamy would appeal to the Centre to provide the aid.

Bhalan said that he would accompany the CM to New Delhi and both of them will  meet the Prime Minister, Textile Minister, Finance Minister and Home Minister in this regard. This project which was already approved in 1998 has been revived through an approval on a board meeting recently.

Bhalan said that it will take at least two months to set things right. The first task is to pay the pending salary of the workers, provide voluntary retirement to around 500 workers, settle the employees provident dues with the employees provident fund  organisation and pay the pending electricity arrears. For settling this, the mill needs around `125 crore. Through the sale of land at Pattanur, Thirubuvanai and Thengaithtu lagoon, more than `100 crore can be obtained. Bhalan said that in 1998, the management had decided to sell the AFT land to the wife of an official, but the workeres moved the court and stopped the sale. The court granted a stay and gave a ruling in favour of the workers. Besides this, a loan of `15 crore is being obtained from UCO bank, another seven crore from Pondicherry Power Corporation and 12 crore grant from Puducherry government.

Meanwhile, a white paper that was brought out by the AFT management a year ago, which has the details of the administrative issues of the mill, has been released to the media on Saturday.


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