Started by the Nizam rulers of Hyderabad, SPM is one of the oldest paper mills in India and was considered to be the country’s largest manufacturers of pulp, paper board and a variety of other papers. It shut down operations in 2014 due to rising input costs, mainly raw materials.
The company is currently in the middle of insolvency proceedings at the Hyderabad bench of the National Company Law Tribunal (NCLT).
The news has been reportedly welcomed by the locals in Sirpur especially more than 3,000 workers of the sick company.
‘In October 2016, IDBI Bank took possession of the mill on behalf of lenders to recover collective dues of Rs422 crore and put the assets up for sale. In October 2017, NCLT admitted a petition by one of Sirpur Paper’s operational creditors to initiate insolvency proceedings against the company and appointed an IRP,’ reported the daily.
Earlier in March 2017, another business daily reported that Telangana Industries Minister KT Rama Rao had assured the then suitors all support from the state government to revive the paper mill.