National Textiles Corporation's bonds issue to mop up around Rs 500 crore (5 billion) will hit the market next week.
The proceeds from the issue will be used for offering voluntary retirement benefits to its about 14,000 workers, official sources told PTI, adding that the meeting of arrangers for the issue will be held this week to decide on the final date.
Until now, 43 out of a total 66 sick mills have been closed down in phases over the past year following the Rs 2,993 crore (Rs 29.93 billion) package approved by the Cabinet and the Board for Industrial and Financial Reconstruction.
This package also involved the revival of 44 viable mills.
NTC has already raised a total amount of about Rs 750 crore (Rs 7.50 billion) through private placement to meet its requirement arising out of the VRS to about 23,000 workers affected by the closure of mills.
As part of this plan, NTC has also initiated the process of selling surplus land held by mills under its nine subsidies to garner a total amount of Rs 3,829.93 crore (Rs 38.29 billion).
In this regard, the textiles secretary is also holding meetings with the senior officials of Maharashtra government in Mumbai on Wednesday and Thursday following Bombay Municial Corporation turning down its sale of land in city.
Sources said while BMC, which disapproved the sale, was pressing for allocation of more land than stipulated towards the development of the city, NTC had offered to give whatever it was required as per the law.
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