National Textiles Starts Property Auction to Raise $1.07 Billion This Year

India’s state-owned National Textiles Corp. today began an online auction of land in central Mumbai as it seeks to raise $1.07 billion from selling property nationwide to become profitable this financial year.

Indiabulls Infratech Ltd., Lodha Ultimate Buildtech & Farms Pvt. and DB View Infracon Pvt. are among eight companies vying to buy 2.39 acres (9664.4 square meters), according to an e- mailed statement from the ministry of textiles. The auction of the plot, which has a minimum price of 2.5 billion rupees, will end July 31.

National Textile, which is selling 10.77 acres in the central Mumbai area of Worli in two auctions, hopes to raise 20 billion rupees ($429 million), Textile Minister Dayanidhi Maran said in New Delhi today. That will account for part of the 50 billion rupees it aims to get in the year ending March 31 by selling properties in cities including Bangalore and Kanpur.

Peninsula Realestate Management Pvt. and Videocon Realty & Infrastructure Ltd. are among seven companies that will bid from Aug. 4 to Aug. 6 for 8.37 acres, according to the statement. The government has set 7.5 billion rupees as the minimum price for the land.

To contact the reporter on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net

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