Assam Industrial Development Corporation (AIDC) has finally taken over the assets of Hindustan Paper Corporation Limited (HPCL) Nagaon at Jagiroad and Cachar Paper Mill, Panchgram.
AIDC was declared the successful bidder. On behalf of the government of Assam, AIDC has taken over the assets of Nagaon and Cachar paper mills.
Although the government of Assam had no stake in the paper mills, the state government has been relentlessly pursuing to resolve the matter 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 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 (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 public announcement on February 26, 2022 at a reserve price of Rs. 375 crores.
The Government of Assam 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 government of Assam also plans to develop the land to promote industrial and economic activities to accelerate the growth of the region.
Industry Minister Chandra Mohan Patowary thanked Chief Minister Himanta Biswa Sarma for his generosity, kindness and expressed gratitude to all the stakeholders that after a long pending and perplexed issue has been finally resolved. ‘The amount will immensely help and benefit all the employees, workers of Nagaon and Cachar paper mills and their families’, added Patowary.
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. 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 National Company Law Tribunal (NCLT), Delhi dated 25.11.2019.
Adil Khan, MD, AIDC and Moloy Ranjan Thakur, authorized person of official liquidator Kuldeep Verma signed an understanding Commerce and Public Enterprises Department and Principal Secretary Dr. KK Dwivedi at Nagaon Paper Mill, Jagiroad.
