There is no hope for revival of Nagaon and Cachar paper mills and it has been announced in the Rajya Sabha by Government yesterday.
The Government made it clear that they are following the National Company Law Tribunal (NCLT) order and close down both the mils. The information was given in a reply to a question raised by Congress MP Ripun Bora.
This announcement came only week after all nine BJP MPs and Assam Minister Piyush Hazarika meeting Union minister for state Rameswar Teli that the Central government in an attempt to revive the two paper mills.
Union Minister of State for Food Processing Rameswar Teli last week urged Heavy Industries Minister Arvind Ganpat Sawant to reopen PSU firm Hindustan Paper Corp’s two defunct mills in Assam by either PPP route or privatising them.
HPC’s Cachar unit in Panchgram stopped working from October 20, 2015, while the Nagaon mill in Jagiroad has stopped functioning on March 31, 2017.
No salary was paid to the staff of Cachar and Nagaon units since January and March of 2017 respectively.
Teli wrote a joint letter along with Assam Minister of State for Health and Family Welfare Pijush Hazarika and all the BJP MPs from the state.
But it seems that Union Government is unlikely top heed Assam MPs request.
The Centre on Monday reaffirmed that the National Company Law Tribunal (NCLT) has on May 2 ordered liquidation of Hindustan Paper Corporation Limited (HPC) that owns Nagaon and Cachar paper mills in Assam.
In reply to a Rajya Sabha question by Assam Congress MP Ripun Bora, Minister for Heavy Industries and Public Enterprises Arvind Ganpat Sawant said that the HPC Chairman and Managing Director had filed an appeal in the NCLT against the order of June 13, 2019 of NCLT, but the appeal was dismissed by appellate tribunal.
The HPC’s Nagaon Paper Mill, Jagiroad and Cachar Paper Mill, Panchgram are presently non-operational. The NCLT through an order directed initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016 against the HPC.
Following the NCLT order, as per the provisions of IBC, the HPC board of directors stands suspended and a resolution professional (RP) and a committee of creditors have been appointed for the HPC. Accordingly, the Board for Industrial and Financial Reconstruction (BIFR) has also been dissolved, while all pending cases before the BIFR stand abated.