NATIONAL JUTE MANUFACTURES CORPORATION LTD. (NJMC)

About:

• National Jute Manufacturers Corporation Ltd. (NJMC) is a Public Sector Undertaking (PSU) under the administrative control of Ministry of Textiles.
  
  
• It was formed in 1980 through the nationalization of six jute mills, namely, Kinnison, Khardah, National, Alexandra, union, all in the state of West Bengal and RBHM Katihar in Bihar.
  
  
• It is headquartered in Kolkata, West Bengal.
  
  

Closure of NJMC:

• Due to financial losses the company was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1993.
  
  
• The company's primary product was hessian jute bags used for packaging of food grain used by the various State Governments. Over the years, the demand for hessian bags has eroded and it has been found to be no longer commercially viable to run the company.
  
  
• The recent decision will benefit the Government exchequer in reducing recurring expenditure incurred in operating both the sick CPSEs in running their activities.