Following the government's go-ahead to lay-off workers under Section 25-M of the Industrial Disputes Act, 1947, the 110-year-old Anglo French Textile (AFT) mill, is all set to lay-off workers in its units A, B and C. The spinning unit is barred from these lay-offs though. The lay-offs are for a span of six months. The action will help the defunct mill to bring down its expenses from Rs 3.25 to Rs 1.25 crore a month as salary to workers. Workers will be paid only half wages during the period. The mill is involved in lay-off exercise since November 2013.
The government has been consistent in its efforts to provide assistance to the mill by infusing funds in the form of share capital to the tune of Rs 367.35 crores and grant-in-aid to the tune of Rs 201.11 crores. Though this amount has been insufficient to run the mill, the management has been able to pay compensation and wages to workers.
The Pondicherry Textile Corporation, at the helm of running the mill, is already in a dicey situation. The firm is running short of funds to such an extent that it has become difficult to meet day-to-day expenses, said the management. Adding on to the predicament is government’s, banks’ and other institutions’ reluctance to grant any loan to settle the statutory and non-statutory liabilities of the mill, which stand at Rs 130.02 crore. Given the current state of the mill, which requires modernisation on a big scale, the shortage of funds clearly indicates that revival won’t take place any time soon. In its attempt to settle dues, the mill may sell the 54.64 acres land in Villupuram district.
