They are protesting against ‘fraud’ by National Textile Corporation by profiteering on realty deals

Nine associations of mill workers have organised a march on 1st March 2012 in Mumbai—from Currey Road to Gold Mohur Mills. About a thousand mill workers are expected to participate in the march, demanding that the land held by National Textile Corporation (NTC) be handed over to the authorities for constructing affordable housing projects for mill workers; instead of being given to joint ventures with private sector companies for development.

Maharashtra Girni Kamgar Union, Girni Kamgar Sangharsh Samiti, Rashtriya Mill Mazdoor Sangh, Sarva Shramik Sanghatana, Girni Kamgar Karmachari Nivara ani Kalyankari Sangh, Girni Kamgar Sena, Girni Kamgar Union, Girni Kamgar Sabha and ST & SC Mazdoor Union will be participating in the march.

Mill workers have demanded that the entire NTC land should be used for public benefit, land of the six unsold mills be handed over to MHADA (Maharashtra Housing and Development Authority) immediately for constructing an affordable housing project and that NTC must immediately scrap the joint ventures with private sector companies for developing the area of four mills.

Datta Iswalkar, president, Girni Kamgar Sangharsh Samiti, told Moneylife, “We demand that instead of giving the land to private companies for joint ventures (JVs) or letting them lying vacant, NTC must give them to the government to provide houses for the workers.”

The few housing units which MHADA has constructed for the mill workers are unaffordable to the workers. “The number of mill workers who have applied for housing under the amended DCR, is over 100,000. To build tenements for all of them, MHADA needs 200 acres of land, which comes to a third of the total mill land in Mumbai, not counting the space taken up by the former cotton godowns. Out of the total land belonging to the NTC mills in Mumbai (i.e., around 266 acres), they have given just 6.07 acres for mill workers’ housing. An equal area has been given to the city, making a total of less than 13 acres. What is happening with the rest of the land? Can the NTC, which is a public sector company, amass unexpected and unaccounted profits? Why cannot it contribute more land to workers and the city?” said a statement issued by the workers’ union.

Ms Krishna Menon, an eminent activist, said, “NTC has handed over the India United Mill No 6 property to the government for constructing a memorial for Dr Ambedkar. That area is near Chaityabhoomi in Dadar and it is a good step, because during and after Ambedkar Parinirvan Divas (which is celebrated on 6th December), everyone flocks to Chaityabhoomi and the area becomes too crowded. If they can give land for a public space, why can’t they give more land for such purposes?”

NTC, which manages affairs of sick textile undertakings, aims at modernizing units via sale of assets, and had proposed to sell 15 mills in Mumbai—seven of which are already sold. NTC has entered into joint ventures with private sector enterprises, namely Bhaskar Industries, Alok Industries & Pantaloon Retail (India) for ‘revival’ of four properties in Mumbai: India United Mills No1, Apollo Textile Mills. Gold Mohur Mills and New City of Bombay Manufacturing Mills. Four mills are claimed to be operative and six NTC mills are lying closed; and are not sold yet.

NTC declares on its website that it has sold assets worth Rs6,480.71 crore under the revival scheme. “All the above mentioned JVs are earning net profits consistently since last three-and-half years,” says NTC on its website.

The mill workers’ unions, however, say that NTC has cheated the workers. They claim that NTC is more concerned with making profits than providing jobs or housing to the workers. “The entire revival plan that NTC has presented before Board for Industrial and Financial Reconstruction (BIFR), based on which they are selling and developing mill lands as real estate in Mumbai, is fraudulent. NTC through its sale of just seven mills in Mumbai has amassed Rs3,999 crore by their own admission. For the revival plan for mills all over India that they submitted to the BIFR, they need only Rs547 crore.  They have made a staggering profit of Rs3,452 crore! What are they doing with this money?” the workers’ associations said in a statement.
 
The unions say that the joint venture projects, which are for ‘revival’, are actually being redeveloped. “For closure or re-development, these four mills would have had to give land to the city for open space and affordable housing under the DCR. They would have been asked what they are doing with the money. This is the reason they (NTC) are claiming that they are running the mills, as ‘textile–related’ activity,” said the statement issued by the unions.

The joint ventures, which NTC says are for “textile-related activities” are also lying mostly fallow, claim the workers. “In Gold Mohur Mills, Dadar East, which has a total land area of 7.05 acres, one small shed is being used for storing cotton. The rest of the land has been lying fallow since four years. In Apollo Mills, Lower Parel, with 6.41 acres, and New City (6.7 acres), Byculla, about 50 sewing machines each are running. In India United Mills No 1 (19.45 acres) in Parel there are 100 sewing machines. Cleary this is a sham,” the statement issued said.