These prime plots would be put up for auction only if bids for the Finlay Mills, once opened on March 3, throw up a good response. The list of mill lands that will go under the hammer include Kohinoor Mills 1 and 2, India United Mills 6 and Bharat Textiles in Dadar, Podar Process and Madhusudan Mills in Worli, India United Mills 4 at Kalachowkie, Digvijay and Jam mills in Lalbaug and Sitaram mills at Chinchpokli.
Of these, NTC plans to hand over India United Mills 4, Jam and Sitaram Mills as BMC and MHADA’s share of the mill land.
As part of its first phase, the NTC had got a whopping Rs 2,200 crore from sale of its five mill land plots in 2005. The first to be put on the block as part of phase 2 was the 10.5 acre Finlay mills at Parel. However in December 2008, when NTC opened bids for Finlay, it received quotations less than half its reserve price of Rs 1,065 crore. While senior NTC officials had then maintained that NTC will hold on to its rates despite the slump, the textile corporation recently decided to re-invite bids at reserve price 30% lower than before. NTC sources state that the decision to compromise on the price was taken as NTC needed funds for its new Greenfield mill projects across the country.
K Ramachandran Pillai, chairman and MD of NTC limited, denied that reduction of prices had anything to do with funds. “The company has taken into account the development in the real estate market where commercial rates have especially come down. We will be auctioning all other mills on the basis of the response for Finlay and Kohinoor mills. We do not want to indulge in distress sale,” said Pillai. He added that the company had initially estimated a revenue of Rs 4,000 crore from phase 2 of its mill land sale though the figures will now have to be reworked.
Officials state that phase two has been delayed due for want of permission from the state government. “Approvals have been delayed due to several reasons such as redevelopment of mill land chawls, employment to workers and argument over whether the share to be given to MHADA and BMC should be in the form of one composite plot or parcels of land in different mills,” said a NTC official. The NTC is also expected to open bids submitted by developers for redevelopment of three of its mill land chawls next month.
Mill land that will be auctioned in Phase II
Finlay mills (Parel): 10.5 acre
Kohinoor mills 1 and 2 (Dadar): 13 acres
Bharat Textiles (Dadar): 8 acres
Podar Process (Worli): 2.4 acres
India United mills 4 (Kalachowkie): 7.7 acres
Jam mills (Lalbaug): 8 acres
Sitaram mills (Chinchpokli): 8 acres
India United mills 6 (Dadar): 12 acres
Madhusudan mills (Worli): 18 acres
Digvijay mills (Lalbaug): 9 acres