NTC shortlists 3 advisors for reviving 29 mills

National Textile Corporation has shortlisted three firms as advisors to revive 29 of its mills through private participation.

"Ernst and Young, Crisil and Dhir and Dhir have been shortlisted from the four who had submitted their bids. The three who were shortlisted after technical evaluation have already submitted their financial bids," NTC Chairman K Ramachandra Pillai said. 

The name of advisors would be finalised in the coming weeks, he said. The goverment took the decision to rope in the advisors for structuring the joint venture for the 29 mills, after its earlier conditions for private partners failed to elicit any response.

As the rent for the mills quoted was high, only one bid was received for the 29 mills.

According to sources, NTC had asked a minimum of five per cent of the value of land as annual rent.

Since NTC mills are located in prime locations in urban areas, where the value of land is high, the rentals would be quite a sum.

The NTC was also exploring the option of entrusting the task of finding joint venture partners to more than one firms that have been shortlisted. This is because the number of mills that have to be dealt with are 29.

"After appointment of advisors, around two to three month will be required for completing the work," Pillai said.

Apart from reviving 29 mills through joint ventures, the NTC will modernise 22 mills on its own for Rs 534 crore (Rs 5.34 billion) as part of restructuring of the company.

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