The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the closure of National Jute Manufactures Corporation Ltd. (NJMC) and its subsidiary Birds Jute & Exports Ltd. (BJEL).
1. Procedure for Closure:-
i) Disposal of fixed assets, as well as current assets, will be in accordance with the guidelines of DPE dated 14.06.2018 and the proceeds from the sale of assets, after meeting the liabilities, will be deposited in Consolidated Fund of India.
ii) In accordance with the DPE guidelines dated 14.06.2018, a Land Management Agency (LMA) will be engaged for the disposal of assets. The LMA will be directed to carry out a thorough verification of the assets before undertaking their disposal in accordance with the DPE guidelines.
iii) Ministry of Textiles does not propose to use any land or building of BJEL for its own purposes or for any of its other CPSEs and the Land Management Agency will be informed upfront accordingly.
2. Benefits:- The decision will benefit the Government exchequer in reducing recurring expenditure incurred in operating both the sick CPSEs in running their activities. The proposal will help in closing loss-making companies and ensuring the release of valuable assets for productive use, or for generating financial resources for developmental progress.
