Puducherry government gets Centre’s nod to sell AFT mill land in Pattanur

MHA grants Puducherry admin permission to sell 55 acres of land owned by defunct Anglo French Textile mill. Govt to appoint transaction advisor to devise selling format, value land. Aim to raise money to clear mill's liabilities of ₹100 crore. Govt to use premises for industries, tourism after clearing dues.

The Union Ministry of Home Affairs has given authority to the Puducherry administration to dispose of around 55 acres of land owned by the defunct Anglo French Textile mill in Pattanur in Villupuram district, Tamil Nadu. 

Conceding to the request of the government, the MHA has accorded permission to the territorial administration to sell the land, following the provisions of the Anglo French Textiles (Acquisition and Transfer of Textile Undertaking) Act, 1986, which led to the takeover of the management of the mill by the government from its private owners, a source in government revealed.

According to a senior official, the MHA has allowed the administration to auction the land after considering the due process of law and by adopting transparent procedures. “We have been given the power to raise money through auction of the land at Pattanur. The MHA has given guidelines to be followed and has stressed the need to adopt a transparent procedure for auctioning the immovable assets of the mill,” the official said.

For the process to be carried forward, the official said, the government has to appoint a transaction advisor, to devise a selling format and for valuation of the land. The administration had to gather GLR value prevailing in Pattanur from the Villupuram district administration before fixing the value of the land, the official said.

“A lot of procedures have to be followed to dispose of the land. It will take a few months for the process to be completed. We are hopeful of raising a good amount to clear the liabilities of the mill running to around ₹100 crore. The liabilities include repayment of dues meant to government agencies, including the electricity department, loans taken from PIPDIC and the salary arrears of employees,” the official added.

After the mill started accumulating huge debts, successive governments have mooted the idea of selling the Pattanur land in a bid to raise resources to clear the liabilities of the mill. The previous Congress government had taken a Cabinet decision to dispose of the land. The matter was then referred to the MHA. The present NDA government, after assuming office had also approached the MHA, seeking approval to sell the the land.

Home Minister A. Namassivayam, while speaking recently at a CII event, had made it clear that the government’s intent was to utilise the premises of AFT mill in the town for promotion of industries and tourism activities after clearing all dues.