New Delhi, May 24: The National Textile Corporation is seeking the Maharashtra government’s approval to sell the land at its 10 mills in Mumbai, which could help the company mop up close to Rs 4,000 crore.

“NTC and the central government are talking to the Maharashtra government for allowing the sale of the land of 10 more mills in Mumbai,” said a senior official.

Last fiscal, NTC had raised Rs 2,000 crore by selling the land of five mills in Mumbai through an open auction.

The corporation will be ploughing back the proceeds to revive its fledgling health. NTC has already placed an order for machinery for five mills with China Texmatech Co.

NTC expects to wipe-off its cash loss by this fiscal and is targeting a turnover of Rs 2,000 crore by 2008-09.

The company had 282 retail outlets. Of this, only 100 remain, which NTC plans to utilise for selling its branded products.

As part of its restructuring of operations, the company has brought down the number of employees from 3 lakh to 21,000. It had raised Rs 1,800 crore through bonds in tranches to fund the voluntary retirement scheme. The first tranche of bonds worth Rs 250 crore would be redeemed in January. The company will be paying Rs 650 crore as interest on these bonds.

As part of the restructuring plan, NTC will modernise 22 mills on its own at a cost of Rs 530 crore, and another 29 will be revived through private participation.