National Textile Corporation faces renewed pressure to revive dormant modernized mills

Trade unions have intensified their demand for the Union government to revitalize 12 modernized units under the National Textile Corporation (NTC) that have remained shuttered since May 2020.  The prolonged inactivity has left nearly 2,000 permanent workers in Tamil Nadu, including approximately 1,500 in Coimbatore alone, in severe financial distress due to an ongoing wage freeze that on for nearly a year. T S Rajamani, State Executive President, Hind Mazdoor Sabha (HMS), emphasized, the continued closure of these modernized, composite spinning and weaving facilities defies the original 1974 nationalization mandate intended to protect employment and ensure industrial viability.

Critics say leaving high-value machinery idle during this extended hiatus has led to significant capital degradation, effectively resulting in a substantial wastage of public resources. As families of long-standing employees struggle with the cessation of even reduced wage payments since June 2025, labor leaders are preparing to escalate their appeal to the Union Ministry of Textiles. They are advocating for a time-bound commitment to resume production, arguing that the modernized nature of these mills makes them inherently capable of immediate operational recovery if the necessary administrative and financial support is provided.

Established in 1968, The National Textile Corporation manages sick textile mills taken over by the government. It historically focused on spinning and weaving across various states. Today, it maintains limited operational units while managing a vast portfolio of assets, navigating complex challenges related to labor, modernization, and debt.