The National Jute Manufacturers Corporation will cease operations. Suffering losses for years, NJMC primarily used to manufacture hessian jute bags used for the packaging food grains. Over the years, demand for hessian bags has eroded and it was found no longer commercially viable to run the company. The company was incorporated in 1980 and is based in Kolkata.
The proposal will aid the center to shutter loss-making companies and making a sure release of valuable assets for productive use, or for generating financial resources for development. NJMC’s subsidiary Birds Jute and Exporters Ltd (BJEL) will also be shut.
Much like NJMC, BJEL has no staff and as the factory is not in operation these closures do not affect any individual. Sale of fixed assets and current assets will be done in line with the guidelines of Department of Public Enterprises (DPE) and the proceeds from the sale of assets, after handling liabilities, will be submitted to the Consolidated Fund of India.
A land management agency will be given the charge for the disposal of assets. It will be authorised to conduct a complete verification of the assets before undertaking their disposal under DPE guidelines.
