GUWAHATI: The long-standing issue surrounding the government’s acquisition of Hindustan Paper Corporation Limited (HPCL) mills at the Nagaon and Cachar reached a conclusive resolution on Tuesday.
Emerging as the successful bidder, the Assam Industrial Development Corporation (AIDC) has formally assumed control over the assets of these erstwhile paper mills.
The AIDC had actively engaged in the e-auction for the entirety of the mills’ assets, encompassing the plant, technical and township areas, following a public announcement made on February 26, 2022. The bidding settled at a reserve price of Rs 375 crores.
Post the official signing of the agreement in Jagiroad, a grateful Industry Minister, Chandra Mohan Patowary, expressed his gratitude to Chief Minister Himanta Biswa Sarma for untangling this protracted issue.
He said, “This move will significantly alleviate the hardships faced by the employees and their families associated with Nagaon and Cachar paper mills.”
Although the government had no stake in the paper mills, the administration has been pursuing to intervene in the affairs of the paper mills on humanitarian grounds.
The Nagaon Paper Mill and Cachar Paper Mill ceased operations in October 2017 and March 2015, respectively, and entered liquidation proceedings due to unpaid debts to financial and operational creditors, as per the directive of the National Company Law Tribunal (NCLT), Delhi, dated November 25, 2019.
During their non-operational period, a distressing toll was taken on the employees, with over 109 of them succumbing to various hardships. They endured 65 months of salary arrears resulting in dire consequences.
Although a relief package of Rs 700 crores was proposed by the government in 2021, addressing pending employee payments, fatalities unfortunately continued to mount, aggravated by poverty, trauma, and limited medical assistance.
With the takeover now sealed, the designated payment of Rs 375 crores will be distributed according to the Insolvency and Bankruptcy Code (IBC) 2016 stipulations and the remaining amount will be directed towards settling the dues for the HPC workforce.
Further, the government envisions repurposing the acquired land to spearhead industrial and economic initiatives, aimed at fostering regional growth.
