Assam: CM formally launches Rs 810 cr package for defunct paper mills

Assam Chief Minister Himanta Biswa Sarma today formally launched the relief package of Rs 810 crore to solve problems of 2,751 ex-employees of the now-defunct paper mills at Nagaon and Cachar districts, respectively.

However, the entire amount will not reach the employees as banks will have to be paid around Rs 150 crore, while Rs 60-80 crore will be paid to the electricity department, Sarma said during an address at an event held at the Kalakshetra in Guwahati.

Of the Rs 810 crore spent by the state government, Rs 350 crore has been paid to the liquidator.He further announced that a Rs 25 crore ex-employees’ and supervisors’ welfare fund will be set up, whose annual interest will be used for medical, educational and social security purposes of the former employees.

84 of the laid-off employees who are eligible for government jobs shall also be recruited, Sarma said.
Sarma further informed that the state government shall undertake an initiative of setting up a new paper mill at Cachar Paper Mill site at Panchgram, while the Nagaon Paper Mill site at Jagiroad will be used for expansion of the state capital (Guwahati).

The Assam government had on March 28, 2022, had taken over the assets of Hindustan Paper Corporation Limited (HPCL) paper mills at Jagiroad and Panchgram.

The Cachar Paper Mill at Panchgram in Hailakandi district and Nagaon Paper Mill at Jagiroad in Morigaon have been non-functional since October 2015 and March 2017, respectively.

Employees of the mills have not been paid salaries since the past 64 months. Meanwhile, Manobendra Chakraborty, the president , welcoming the move, has said it was “essentially desired to save lives as 107 workers suffered premature deaths, while 4 committed suicide due to non-payment of salary.”

The relief package, although not covering the entire dues, will extend immediate support to save the lives, he added.