Guwahati: Assam Government on Monday took over the assets of Hindustan Paper Corporation Limited (HPCL) Nagaon at Jagiroad and Cachar Paper Mill, Panchgram in Hailakandi district.
AIDC was declared as the successful bidder and on behalf of the Assam government, AIDC has taken over the assets of Nagaon and Cachar paper mills, said a statement.
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Adil Khan, MD, AIDC and Moloy Ranjan Thakur, authorized person of official liquidator Kuldeep Verma signed an understanding in presence of Industries Minister Chandra Mohan Patowary.
In the meantime, a team of AIDC officials has also taken over the assets of Cachar Paper Mill at Panchgram.
Although the Assam government had no stake in the paper mills, the State Government has been relentlessly pursuing to resolve the matter on humanitarian grounds, added the statement.
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Assam government offered a general relief package of Rs. 700 crores.
The package included the 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.
The relief package of Rs. 700 crores was accorded approval in the cabinet meeting held on September 30, 2021.
The nodal agency for this matter, Assam Industrial Development Corporation Limited (AIDC), had participated in the e-auction process of all the assets, plant, technical area, township area of Nagaon and Cachar paper mills pursuant to the public announcement on February 26, 2022, at a reserve price of Rs. 375 crores.
The Assam government has paid the amount of Rs, 375 crores and will be distributed by the liquidator as per the norms of Insolvency and Bankruptcy Code (IBC) 2016.
The remaining amount of Rs. 700 crores will be utilized in clearing the dues of employees and workers of HPC.
The Assam government also plans to develop the land to promote industrial and economic activities to accelerate the growth of the region.
The land area of the paper mill at Nagaon Paper Mill is 1765 bigha, 33 katha and 24 lessa. Land area of Cachar Paper Mill is 2916 bigha, 1 katha and 7 lessa. The total land area of both the paper mills are 4681 bigha, 34 katha and 17 lessa.
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 on November 25, 2019.