**Executive Summary**
This document is an answer provided by the Minister of State for Textiles to the Lok Sabha (Unstarred Question No. 267) regarding the revival of companies, specifically the National Textile Corporation Ltd. (NTC) and the British India Corporation Limited (BIC). The answer, dated December 2, 2025, addresses the government's plans for these enterprises, their financial positions, and employee compensation. The Committee of Group of Officer (CGO) recommended the closure of BIC on 27.01.2022 and the closure of NTC along with its 23 mills on 4.4.2022.
**Key Points / Main Content**
* **Closure Recommendations:**
* The Committee of Group of Officer (CGO) recommended closure of British India Corporation Ltd.(BIC) on January 27, 2022.
* The CGO also recommended the closure of National Textiles Corporation Ltd.(NTC) along with its 23 mills on April 4, 2022.
* **National Textile Corporation Ltd. (NTC) Revival Efforts:**
* In 2002, BIFR sanctioned a revival scheme to modernize 53 mills, later modified in 2006 and 2008.
* 23 mills became operational but were suspended due to the nationwide lockdown on March 25, 2020.
* Operations resumed partially after the lockdown but were not sustained after 2021.
* **British India Corporation Limited (BIC) Revival Efforts:**
* BIC was referred to BIFR in 1991 and declared sick in 1992 due to continuous losses.
* A revival scheme approved in 2000 at a cost of Rs. 211 crore was to be funded by the sale of surplus land.
* BIFR sanctioned a draft rehabilitation scheme in 2002, to be implemented within two years.
* The sale of properties did not occur because the Government of Uttar Pradesh did not grant permission for conversion of leasehold land into freehold.
* Production activity stopped in BIC in 2012.
* **Employee Statistics (as of 30.09.2025):**
* NTC and its five subsidiaries employed 8301 employees/workers.
* BIC employed 201 employees (as of 01.11.2025).
* **Employee Compensation:**
* NTC: Full salaries and wages paid to Industrial Dearness Allowance (IDA) employees and workers required for essential services up to January 2025, and 25% amount of interim relief paid for the month of February 2025. Remaining workers were paid 100% of their wages up to June 2023, 50% of their wages till January 2025 and 25% amount of interim relief for February 2025.
* Five Subsidiary companies have paid the salaries as of 31 October, 2025.
* BIC: Salary has been paid up to March 2025.
**Impact Analysis**
**Stakeholder: Employees/Workers of NTC and its subsidiaries**
**Impact:**
The closure recommendation and operational suspensions impact job security. There are also impacts on payment, as not all salaries have been paid out entirely.
**Action Required:**
Employees will need to seek alternative employment if the closure proceeds. They will need to follow-up regarding the salary payment.
**Stakeholder: Employees/Workers of BIC**
**Impact:**
The closure recommendation impacts job security.
**Action Required:**
Employees will need to seek alternative employment if the closure proceeds.
**Stakeholder: Government**
**Impact:**
The government bears financial implications for closure, employee compensation, and potential asset liquidation.
**Action Required:**
The government must execute closure procedures and manage related financial obligations.
Key Entities Referenced
National Textile Corporation Ltd.(NTC): A public sector enterprise, along with its subsidiaries, that the government is considering closing. It was subject to a revival scheme sanctioned by BIFR.
British India Corporation Ltd.(BIC): A public sector enterprise, also considered for closure, that was declared sick and referred to BIFR.
Board for Industrial and Financial Reconstruction (BIFR): A board that sanctioned revival schemes for NTC and BIC.
Ministry of Textiles: The ministry responsible for addressing questions related to the revival or closure of NTC and BIC.
Uttar Pradesh: The state where the permission for conversion of land use was not granted for BIC, hindering its revival.
LOK SABHA
UNSTARRED QUESTION NO. 267
TO BE ANSWERED ON 02.12.2025
REVIVAL OF COMPANIES
267. COM. SELVARAJ V:
SHRI SUBBARAYAN K:
Will the Minister of TEXTILES वस्त्र मंत्री
be pleased to state :
(a) whether the Government is considering a proposal to close down seven public sector enterprises —
the National Textile Corporation Ltd. and its five subsidiaries and British India Corporation Limited;
(b) if so, the financial position of these companies during the last five years;
(c) whether Government has taken any steps to revive these companies and if so, the details thereof with
result;
(d) the number of employees/workers employed in these companies; and
(e) whether employees of the said companies are being paid their salaries regularly and if so, the details
thereof?
उत्तर
ANSWER
वस्त्र राज् य मंत्री (श्री पबित्र मार्घरे रटा)
THE MINISTER OF STATE FOR TEXTILES
(SHRI PABITRA MARGHERITA)
(a) & (b): The Committee of Group of Officer (CGO) constituted, under the chairpersonship of
CEO, NITI Aayog, in its meeting held on 27.01.2022 recommended closure of British India Corporation
Ltd.(BIC) and on 4.4.2022 recommended the closures of National Textiles Corporation Ltd.(NTC)
alongwith its 23 mills.
(c): In the year 2002, Board for Industrial and Financial Reconstruction (BIFR) had sanctioned the
revival scheme for NTC as per which 53 mills were proposed to be modernized by NTC. However, this
revival scheme was later modified, first in the year 2006 and then in the year 2008. Since then, 23 mills
were made operational by NTC. However, operation of these mills were suspended due to declaration of
Nation-wide lockdown on 25.03.2020. Subsequently, with the ease of lockdown restrictions, operation
of some of the mills were resumed but could not be sustained after 2021.
In so far as the BIC is concerned, owing to continuous losses, BIC was referred to the Board for
Industrial and Financial Reconstruction (BIFR) in 1991 and was declared sick in 1992. The Cabinet
approved a revival scheme on 21.11.2000 at a cost of Rs.211 crore. The cost of the scheme was to be met
by sale of surplus land and assets. BIFR sanctioned the draft rehabilitation scheme of BIC on
18.12.2002, which was to be implemented within a period of two years. However, the sale of the
properties of BIC could not materialize as permission for conversion of leasehold /nazul land into
freehold was not granted by the Government of Uttar Pradesh. The production activity stopped in BIC in
2012.(d): The present numbers of employees/workers in NTC and its five subsidiaries (as on
30.09.2025) are 8301. As regards BIC, the same as on 01.11.2025 is 201.
(e): So far as NTC is concerned full salaries and wages have been paid to all Industrial Dearness
Allowance (IDA) employees and workers required for essential services up to January, 2025 and 25%
amount of interim relief have been paid for the month of February, 2025. The remaining workers were
paid 100% of their wages up to June, 2023, 50% of their wages till January, 2025 and 25% amount of
interim relief have been paid for the month of February, 2025. Five Subsidiary companies have paid the
salaries as of 31 October, 2025. As regards BIC, salary has been paid upto March, 2025.
****