Revival of National Jute Manufactures Corporation Limited

The Cabinet today approved the proposal for revival of National Jute Manufactures Corporation (NJMC) Ltd. The decision consists of running of three mills of NJMC out of total six closed mills under the Corporation. This will lead to an additional production of jute products and value addition. The mills approved for revival are, viz. Kinnison & Khardah in West Bengal and Rai Bahadur Hadrut Mill, Katihar, Bihar. Remaining three mills (National, Union and Alexendra) are proposed to be closed.

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 GOI loan would be the first charge on the receipts from sale of assets. Government has already spent about Rs.1067.66 crore on giving VRS to about 17000 workmen, 930 clerical staff apart from settling various statutory dues etc. It also includes a provision for Voluntary Retirement Scheme (VRS) for officers and staff. The total production capacity of three mills put together would be 82,500 MT of packaging material every year. This will meet about 8% of the total demand of the jute packaging material by Government agencies. The revived mills are proposed to be operated as model modernized mill.

A submission will accordingly be made by the Government before BIFR requesting to sanction the revival plan.

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AKT/SH/VK