Assam govt takes over assets of Nagaon, Cachar Paper Mills

The Assam government on Monday took over the assets of Hindustan Paper Corporation Limited (HPCL), Nagaon at Jagiroad in Morigaon district and Cachar Paper Mill at Panchgram in Hailakandi district.

Assam Industrial Development Corporation (AIDC) was declared the successful bidder yesterday.

On behalf of the Government of Assam, the AIDC has taken over the assets of the Nagaon and Cachar paper mills.

Adil Khan, the MD of AIDC and Moloy Ranjan Thakur, the 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 KK Dwivedi at Nagaon Paper Mill, Jagiroad.

In the meantime, a team of AIDC officials has also taken over the assets of Cachar Paper Mill at Panchgram.

Although the Government of Assam had no stake in the paper mills, the administration has been pursuing to intervene in the affairs of the paper mills on humanitarian grounds.

After the initiative of Chief Minister Himanta Biswa Sarma, the Government of Assam offered a general relief package of Rs 700 crores.

The package includes a 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 officers and supervisors' associations and workers unions of the HPC Limited (in liquidation) and the Government of Assam.

A relief package of Rs 700 crores was accorded approval in the Cabinet meeting held on September 30, 2021.

The nodal agency for this matter, Assam Industrial Development Corporation Limited (AIDC), had participated in the e-auction process of all the assets, plant, technical area, township area of Nagaon and Cachar paper mills pursuant to the public announcement on February 26, 2022, at a reserve price of Rs 375 crores.

The Government of Assam has paid the amount of Rs 375 crores and will be distributed by the liquidator as per the norms of the Insolvency and Bankruptcy Code (IBC) 2016. The remaining amount of Rs 700 crores will be utilized in clearing the dues of employees and workers of HPC.

The Government of Assam also plans to develop the land to promote industrial and economic activities to accelerate the growth of the region.

Industry Minister Chandra Mohan Patowary thanked Chief Minister Himanta Biswa Sarma after a long-pending and perplexing issue was finally resolved.

"The amount will immensely help and benefit all the employees, workers of Nagaon and Cachar paper mills and their families," added Patowary.

The land area of the paper mill at Nagaon Paper Mill is 1765 bigha, 33 katha and 24 lessa, and the land area of Cachar Paper Mill is 2916 bigha, 1 katha and 7 lessa. The total land area of both the paper mills is 4681 bigha, 34 katha and 17 lessa.

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 the National Company Law Tribunal (NCLT), Delhi dated November 25, 2019.

( With inputs from ANI )