Karnataka explores private route to revive Mysore Paper Mills
Large and Medium Industries Minister M B Patil told the Karnataka Legislative Assembly that reviving the unit as a public sector enterprise was not viable.
29 Aug 2025 | 302 Views | By Sai Deepthi P
The Karnataka government is considering leasing the Mysore Paper Mills (MPM) in Bhadravathi to private operators in a bid to restart operations, a decade after the factory ceased production.
Large and Medium Industries minister MB Patil told the Karnataka Legislative Assembly that reviving the unit as a public sector enterprise was not viable, and efforts were now directed towards attracting private bidders with exemptions and relief measures. Prospective operators have indicated interest, provided they are exempted from liabilities and permitted to grow eucalyptus for raw material.
The state has appointed Infrastructure Development Corporation (Karnataka) as transaction advisor to oversee bid preparation, evaluation, and agreement finalisation. Patil noted that earlier tenders since 2017 failed to attract bids, but a renewed push is under way, with discussions on waiver of dues and resolution of pending loans.
MPM, once a flagship industry of Shivamogga district, stopped paper production in 2015 and sugar operations in 2016. The state formally closed the unit in 2021, terminating 202 employees with compensation. At its peak, the mill directly employed nearly 5,000 people.
Meanwhile, MPM has informed the BSE that its unaudited Q1 FY26 results remain pending, citing delays in board approval. The company currently limits operations to forestry plantations.