Assam: State govt takes over assets of Nagaon and Cachar paper mills

After lengthy and consistent efforts, talks, and meetings, the

 

?q=assam+government&ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Esearch">Assam Government has finally taken over the assets of Hindustan Paper Corporation Limited (HPCL) Nagaon at Jagiroad in Morigaon District and Cachar Paper Mill at Panchgram in Hailakandi District.

 

The Assam government announced on Monday that it has purchased two defunct paper mills in the state from PSU Hindustan Paper Corp (HPC) for Rs 375 crore.

 

Assam Industrial Development Corporation (AIDC) was declared as the successful bidder. According to an official release, the AIDC has taken over the  assets of the Nagaon and Cachar paper mills on behalf of the Government of Assam.

 

The AIDC has engaged in the e-auction process of all the assets, plant, technical area, and township area of the Nagaon and Cachar paper mills in response to a public notification on February 26, 2022, at a reserve price of Rs 375 crore.

 

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

 

The acquisition, according to Chief Minister Himanta Biswa Sarma, will pave the road for the mill workers' long-awaited respite.

 

In the presence of Assam Industries, Commerce, and Public Enterprises Minister Chandra Mohan Patowary, AIDC Managing Director Adil Khan and Moloy Ranjan Thakur, authorised person of official liquidator Kuldeep Verma, signed an arrangement at the Nagaon Paper Mill complex in the evening.

 

Meanwhile, a team of AIDC officials took over the assets of Cachar Paper Mill in Panchgram, according to a statement from the Industries and Commerce Department.

 

"The Government of Assam also plans to develop the land to promote industrial and economic activities to accelerate the growth of the region," it said, adding the total land area of both the paper mills are about 1,550 acres.

 

The acquisition, according to Chief Minister Himanta Biswa Sarma, will pave the road for the mill workers' long-awaited respite.

 

In the presence of Assam Industries, Commerce, and Public Enterprises Minister Chandra Mohan Patowary, AIDC Managing Director Adil Khan and Moloy Ranjan Thakur, authorised person of official liquidator Kuldeep Verma, signed an arrangement at the Nagaon Paper Mill complex in the evening.

 

Meanwhile, a team of AIDC officials took over the assets of Cachar Paper Mill in Panchgram, according to a statement from the Industries and Commerce Department.

 

HPC's Cachar unit in Panchgram shut down on October 20, 2015, and the Nagaon mill in Jagiroad shut down on March 31, 2017.

Staff at the Cachar and Nagaon units have not been paid since January and March of this year, respectively.

 

The Assam Cabinet approved a Rs 700-crore relief package for the two paper mills on September 30, last year.

The majority of this sum will be used to pay employee dues, while some will be used to pay bills such as electricity charges.

 

Previously, an agreement was signed between representatives of the HPC's officers and supervisors' associations and workers unions and the Government of Assam, which resulted in the relief package.

 

The National Company Law Tribunal (NCLT) directed the initiation of Corporate Insolvency Resolution Proceedings under the Insolvency and Bankruptcy Code (IBC), 2016 against the HPC in June 2018, after it submitted a Rs 1,995-crore revival proposal to the government.

 

During the case's hearing, the NCLT ordered the liquidation of the HPC's two mills, despite the BJP-led state government's repeated promises to reopen the two plants since former Chief Minister Sarbananda Sonowal took office in 2016.

 

Following the failure of all options for revival after several rounds of meetings with all stakeholders and a number of hearings, the NCLT on April 26 last year ordered the Liquidator to sell the entire HPC in accordance with the decision of the National Company Law Appellate Tribunal (NCLAT).

 

During the auction, HPC's entire asset portfolio was auctioned off, including the two mills in Nagaon and Cachar, residential flats in Guwahati, Kolkata, and Mumbai, office assets in Kolkata and New Delhi, and a massive amount of inventory such as coal, unslaked lime, bamboo, and limestone.

 

The reserve price for the bids was initially kept at Rs 1,139 crore, but it attracted no bidder. The price was lowered several times and the Assam government finally acquired the mills at Rs 375 crore.