Updated By: LatestGKGS Desk
Ministry of Textile: Jute Manufacturing Corporation Limited and its subsidiary
Jute Manufactures Company: The Cabinet approved the closure of National Jute Manufacturing Corporation Limited and its subsidiary, Bird Jute and Exports Ltd.
The Union Cabinet has approved its closure of National Jute Manufactures Corporation Limited and its subsidiary, Bird Jute and Exports Ltd.
Expected assets and current assets will be executed according to the DPE guidelines of 14/06/2018 and after receipt of liabilities, the receipts from the sale of assets will be deposited in the accumulated fund of India.
The Ministry of Textiles has no proposal to use any of the BJEL's land or building for itself or for any of its public establishments and its information will be given directly to the land management agency.
With this decision, the government fund will get the benefit of reducing the recurring expenditure coming in to run both ill public establishments. This proposal will help in discontinuing loss-making companies and will be sure to release valuable assets for the purpose of mobilizing financial resources for useful work or for development.
NJMC has been running losses for many years and since 1993 it has been referred to BIFR for consideration. The company's main product was sack which was used by various state governments to pack food grains. Demand for jute sack has been declining for many years and it has been found that it is not commercially profitable to run the company.
