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NTC starts e-auctioning of mill land in Mumbai

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With an objective to bring transparency in the process of sale of land of the closed mills of the National Textile Corporation Ltd (NTC) Thiru Dayanidhi Maran, Union Minister of Textiles, commenced the e-auctioning of the sale of land of NTC in Mumbai. According to a press statement issued by the Ministry, this is the first ever initiative for any Govt Company to sell land by the e-auction process. The function was attended by Tmt. Panabaaka Lakshmi , Minister of State for Textiles, Tmt Rita Menon , Secretary Textiles, and senior officials of the NTC and the Ministry.
Complying with the directions of Thiru Dayanidhi Maran, the NTC initiated, last month, the process of selling the land through ‘e-auction process’ under its revival scheme for sale of land of Poddar Textile Mills and Bharat Textile Mills in Mumbai. Earlier, NTC had been resorting to only tender process for selling their immovable properties. The process of e-auctioning will be conducted by M/s e-Procurement Technologies Ltd, Ahmedabad on behalf of NTC, added the statement.
Today, Thiru Maran started the process of e-auctioning of Podar Mill (Process House) land facing Worli Sea Face at Mumbai, measuring 2.39 acres (9664.44 sq m) by e-auctioning. The reserve price of the land has been fixed at Rs250 crore. There are 8 bidders participating in the bidding process for the next 3 days from 29th to 31st July, 2010 (3 days) with auto extension as applicable after 5.00 PM on 31.07.2010.
M/s Indiabulls Infratech Limited, Mumbai.
M/s National Building Construction Corpn., Ltd., New Delhi.
M/s Kohinoor Duet, Mumbai.
M/s Peninsula Mega-City Development Pvt. Ltd., Mumbai.
M/s Celebration Developers Pvt. Ltd., Mumbai.
M/s Runwal Developers Pvt. Ltd., Mumbai.
M/s Lodha Ultimate Buildtech & Farms Pvt. Ltd., Mumbai.
M/s DB View Infracon Pvt. Ltd., Mumbai

This will be followed by e-auctioning of the next property at Mumbai, viz., Bharat Textile Mills, measuring 8.37 acres (33,938.83 sq m). The reserve price of the property has been fixed at Rs. 750 crore. This auction will be carried out on 4th, 5th and 6th August, 2010. For this auction, seven interested parties have submitted the EMD. NTC is expecting to mobilize enough resources, well above the reserve price by these auctions for the implementation of its Revival Scheme.
1. DB View Infracon Pvt Ltd
2. Indiabulls Infraestate Ltd
3. Peninsula Realestate Magmt Pvt Ltd
4. Ahinsa Realtors Pvt Ltd. (Tata)
5. Perspective Realty Pvt Ltd. (Oberoi)
6. Videocon Realty & Infrs. Ltd
7. Lodha Strucutre Developers Pvt Ltd.
NTC will declare its starting price which shall be visible to all the vendors during the start of the forward auction. Any bidder can start bidding, in the online forward auction, from the start price itself. The second online bid and onwards will have to be higher than the H1 rate by minimum one increment value or higher. The minimum bid increment amount has been fixed at Rs2 crore. All the bidders would have a valid digital certificate well in advance to participate in the online event. Under no circumstances, the bidders will be allowed to participate in the online event without Digital Certificate. Thiru. Maran announced that there will be a press briefing by the Company every day between 5.30 and 6.00 PM to inform the highest bidding amount and the auction will be concluded on 31.7.2010 at 5.00 PM. If a bidder places a bid in the last 10 minutes of closing of the auction, the auction shall get extended automatically for another 10 minutes. In case, there is no bid in the last 10 minutes of closing of auction, the auction shall get closed automatically without any extension.
NTC has drawn a roadmap to generate Rs. 5000 crore during the current financial year by selling most of its properties in the city of Mumbai and a few small size properties in the city of Indore, Kanpur, Bangalore, Coimbatore, etc. The main resources will be from the city of Mumbai by selling the balance 2,24,500 sq m of land. On the basis of Rs100 crore per acre of reserve price that the company has fixed, it should be easily possible for NTC to generate Rs5000 crore by selling its land.
The Company has already paid Rs 2256 crore by way of compensation to 61,900 employees under MVRS and Rs900 crore (approx) on modernization of its 21 mills, of which 3 are new composite mills – one each at Hassan (Karnataka); Achalpur (Maharashtra); Ahmedabad (Gujarat). 18 of the mills have already completed modernization and are generating cash profit for the last four months.
NTC is expected to transform itself into a profit making integrated textile company, consisting of ginning, spinning,weaving, processing, and garmenting by the end of the current financial year. The handsome returns, which NTC expects from this new revolutionary method, will pave the way for future expansion, forward and backward integration proposals apart from foraying into the technical textiles field, for the NTC’s strategic turn-around to become a noteworthy textile industry player with presence through the value chain.
Thiru. Dayanidhi Maran added that henceforth all land of NTC will be sold under e-auction. This will set an example for all Government companies to emulate this process.

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