Assam govt takes over assets of Nagaon, Cachar Paper Mills

The Assam government 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 on 29 March.

20 Apr 2022 | By PrintWeek Team

The Nagaon Paper Mill and Cachar Paper Mill had been non-operational since October 2017 and March 2015 respectively

Assam Industrial Development Corporation (AIDC) was declared the successful bidder. On behalf of the Government of Assam, the AIDC has taken over the assets of the Nagaon and Cachar paper mills.

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-crore. 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-crore was accorded approval in the Cabinet meeting held on 30 September 2021.

The nodal agency for this matter, Assam Industrial Development Corporation Limited (AIDC), had participated in the eAuction process of all the assets, plant, technical area, township area of Nagaon and Cachar paper mills pursuant to the public announcement on 26 February 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 the 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 Government of Assam also plans to develop the land to promote industrial and economic activities to accelerate the growth of the region.

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. 

(Agency)