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Cheviot bids for NJMC mill

Jayanta Mallick

KOLKATA, Sept. 12

CHEVIOT Co Ltd, controlled by Mr Harsh Kanoria, has bid for a mill belonging to National Jute Manufactures Corporation Ltd (NJMC).

Mr D.K. Mohta, General Manager (Finance) and Company Secretary of Cheviot, which has a jute mill and an export-oriented jute products unit, said: ``In line with the company's policy of increasing its presence in the jute industry, it has been decided to participate in the offer invited by the Industrial Investment Bank of India (IIBI).''

IIBI, the operating agency for NJMC, has already invited bids for all the six jute mills of the sick PSU. Cheviot's is the first response to the offer.

According to an action plan proposed by the Union Textiles Ministry (the administrative Ministry), the workers' co-operatives, the West Bengal and Bihar Governments (where one of the mills is located), any public sector undertaking or a private sector bi dder can respond to the tender floated in respect of each of the six units.

Following the approval by the Union Cabinet, the action plan was placed before the Board for Industrial and Financial Reconstruction (BIFR) on June 27 last. The action plan was finalised after a number of revival schemes were found unfeasible.

The Department of Public Enterprises, however, had gone on record saying that any public sector enterprise would not enter the fray. On earlier occasions, the Ministry had failed to receive any response from workers' co-operatives and the two State Gover nments.

An informal assessment made by the Textile Ministry has suggested that privatisation of these mills was possible. Since disinvestment in the NJMC with all six mills together might not be possible, the Textile Ministry had suggested mill-wise sale of asse ts.

During 2000-2001, the corporation's operating loss was projected at Rs 126.50 crore. Its combined operating loss since 1980-81 stands at around Rs 1,306.91 crore.