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- By Parinda News Bureau, December 15, 2006, 12:00 IST
Birla-owned Century Textiles and Industries has announced its plans to wind down operations in Mumbai after more than a century of existence.
About 6,300 of the 6,700 workers have opted for the voluntary retirement scheme (VRS) offered by the company management.
R.K. Dalmiya, president, Century Textiles and Industries, said that 95% of the workforce has accepted the offer, which amounts to about Rs 900,000- 1 million a person. The rest are still employed at the mill but very few machines are functioning.
The company had earlier said that running a mill was unviable in Mumbai because of high labour costs, taxes and water charges. The Century Mill area houses a workers` colony and those living there have not been asked to leave.
The company has yet to decide on what to do with the land. According to Udyog Bhat, leader of the Sarva Shramik Sanghatana, 700-800 workers have rejected the VRS offer of Rs 300,000 - 500,000 an employee as their demand is for a compensation equal to what the workers could have possibly earned if they had worked till 60.
General opinion among the financial Analysts is that the shutdown will have a positive effect on the company and help its stock price.
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