Day 2: NTC Worli land bid up at Rs 1,175 cr

State-owned National Textile Corporation (NTC) received bids of Rs 1,175 crore on the second day of the e-auction for the 8.37-acre Bharat Mills plot in Worli, Mumbai.

The highest bid at 1,175 crore was 55.6 per cent higher than the reserve price of Rs 750 crore set for the property. The auction will continue till tomorrow.

Indiabulls Infrastructure Limited, DB View Infracon Private Limited, Peninsula Real Estate Management Private Limited and Lodha Structure Developers are in the fray for the plot, among others.

Last week, Indiabulls Infrastructure had won NTC’s first e-auction of the 2.39-acre Poddar Mill land at Rs 474 crore in central Mumbai last week.

NTC is selling defunct textile mills to raise resources for the revival of 21 potentially viable textile mills. The public sector company expects to mobilise around Rs 5,000 crore through sale of land in the current financial year.

NTC has so far made Rs 4,000 crore from selling land of 26 defunct mills in Mumbai and other cities since March 2005. The money has been used for modernisation and capacity building of sick mills, diversifying into new products and strengthening their retail plans. NTC Chairman K Ramachandran Pillai had said he expects to double its spindle capacity from the existing 675,000 to 1.2 million spindles during FY11.