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NTC to offer VRS for Shengottah unit

G. Gurumurthy

NTC has spent nearly Rs 40 crore towards workmen's compensation offered under the VRS programme in Tamil Nadu, for the past one year and nearly 2000 workers had opted for VRS.

COIMBATORE, Aug.6

NATIONAL Textile Corporation's (NTC) Tamil Nadu subsidiary is to offer voluntary retirement scheme to the workers of Sri Balaramavarma Textile Mills at Shengottah.

It is one of the NTC units identified for closure and divestment as part of the subsidiary's revival and rehabilitation scheme. The modified VRS, which will cover about 300 workers including 40 officers and clerks, will be introduced from Wednesday and the scheme will be in vogue till August 27, NTC sources told Business Line.

Balaramavarma Textile Mills will be the fourth NTC unit to undertake the VRS as the NTC subsidiary has already successfully completed the voluntary workers separation programme in three other textile mills — Om Parasakthi, Krishnaveni and Somasundaram textile mills (all in Coimbatore) — which were closed down and their assets slated for disposal.

With the declaration of VRS for the Shengottah unit, the NTC subsidiary has almost kept the schedule of the first phase of revamp, namely covering all the four unviable textile units under the VRS .

The NTC in Tamil Nadu has been allowed to halt operation in these four unviable units through the `budgeted' VRS programme and the subsidiary will thus be left with only six viable textile plants — Combodia, Rangavilas, Pankaja, Kaleeswarar `B', Pioneer and Murugan Mills — whose operations would be revamped by modernisation-cum-asset-sale route.

The NTC has already spent close to Rs 40 crore towards workmen's compensation offered under the VRS programme in Tamil Nadu, for the past one year and nearly 2000-odd workers had opted for VRS.

It is estimated that the TN subsidiary would expend another Rs10 crore or so towards paying the VRS compensation to the workers of the Balaramavarma Textile Mills.

Under the modified VRS package adopted by the subsidiary to settle the workmen compensation as in the case of Somasundaram mills, the eligible workers of the Shengottah unit would receive 35 days wages for each year of service completed and 25 days wage for each year of service left (but the compensation under both put together should not exceed the wages payable had they continued in service).

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