Assam Government takes over paper mills' assets

 This will pave the way for the long-awaited relief to the mill workers: CM

STAFF REPORTER

GUWAHATI: The Assam Government finally took over the assets of Hindustan Paper Corporation Limited (HPCL) Nagaon at Jagiroad under Morigaon district and Cachar Paper Mill, Panchgram under Hailakandi district today.

Principal Secretary, Industry and Commerce, KK Dwivedi, while talking to The Sentinel, said that on behalf of the Assam Government, Assam Industrial Development Corporation (AIDC) has taken over the assets of Nagaon and Cachar paper mills. AIDC was declared as the successful bidder today.

Dwivedi said, "The Government of Assam has paid the amount of Rs 375 crore and it will be distributed by the liquidator as per the norms of Insolvency and Bankruptcy Code (IBC) 2016.

"Now all assets of the two paper mills, plant technical area, township area along with the leasehold land of HPC at Haflong have now come under the Assam Government.

"It is a great success for the Assam Government. We now have to plan how to properly utilize these assets. The process to clear the pending dues of around 1,100 families of the employees and workers will start soon."

Chief Minister Himanta Biswa Sarma tweeted, "Happy to share that after long & sustained efforts our Govt has finally taken over assets of HPC Nagaon & Cachar paper mills by paying Rs 375 cr through a transparent bidding process. This will pave the way for the long-awaited relief to the mill workers."

Adil Khan, MD, AIDC, and Moloy Ranjan Thakur, authorized person of official liquidator Kuldeep Verma, signed an understanding in presence of Chandra Mohan Patowary, Minister of Industries, Commerce and Public Enterprises Department and Principal Secretary Dr KK Dwivedi at Nagaon Paper Mill, Jagiroad today.

Although the Government of Assam had no stake in the paper mills, the State Government has been relentlessly pursuing to resolve the matter on humanitarian grounds. After the initiative of Chief Minister Himanta Biswa Sarma, the Government of Assam offered a general relief package of Rs 700 crore. The package included settlement of various outstanding dues of employees and workers of HPCL's assets at Nagaon and Cachar paper mills.

An agreement was signed between the representatives of the Government of Assam and leaders of associations/ unions of the HPC Limited (in liquidation) on September 28, 2021. The relief package of Rs 700 crore was accorded approval in the cabinet meeting held on September 30, 2021.

Nagaon Paper Mill was established in 1970 and Cachar Paper Mill in 1988. The Nagaon Paper Mill and Cachar Paper Mill had been non-operational since October 2017 and March 2015 respectively and under liquidation proceedings on account of non-clearance of dues of financial and operational creditors as per the order of National Company Law Tribunal (NCLT), Delhi dated 25.11.2019.

Minister Patowary thanked Chief Minister Himanta Biswa Sarma for his generosity, kindness and expressed gratitude to all the stakeholders as a long pending and perplexed issue had been finally resolved. "The amount will immensely help and benefit all the employees, workers of Nagaon and Cachar paper mills and their families," he added.

The land area of the paper mill at Nagaon Paper Mill is 1765 bigha, 33 katha and 24 lessa. Land area of Cachar Paper Mill is 2916 bigha, 1 katha and 7 lessa. Total land area of both the paper mills is 4,681 bigha, 34 katha and 17 lessa.

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