The Assam government on Monday formally took over the assets of Hindustan Paper Corporation Limited’s (HPCL) two closed paper mill units at Jagiroad in Morigaon district and Panchgram in Hailakandi district.
The Nagaon Paper Mill has been non-operational since October 2017 and Cachar Paper Mill since March 2015 and were under liquidation proceedings on account of non-clearance of dues of financial and operational creditors according to the order of National Company Law Tribunal (NCLT).
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 crore.
A relief package of Rs 700 crore was accorded approval in the cabinet meeting held on September 30, 2021 from which the state government has paid the amount of Rs 375 crore for taking over the assets of the two mills.
This amount will be distributed by the liquidator as per the norms of Insolvency and Bankruptcy Code (IBC) 2016. The remaining amount will be utilised in clearing the dues of employees and workers of HPC.
After being declared as the successful bidder for taking over the two units, the AIDC took over the assets of Nagaon and Cachar paper mills. A government spokesperson stated that “after long and sustained efforts, dialogues and meetings, the Assam government has finally taken over the assets today.”
AIDC managing director Adil Khan and Moloy Ranjan Thakur, authorized person of official liquidator Kuldeep Verma, signed an agreement in the presence of industries minister Chandra Mohan Patowary, at Nagaon Paper Mill.
A team of AIDC officials also took over the assets of Cachar Paper Mill at Panchgram during the day.
“Although the Assam government had no stake in the paper mills, it has been relentlessly pursuing to resolve the matter on humanitarian grounds. After the initiative of CM Himanta Biswa Sarma, the government offered a relief package of Rs 700 crore,” the spokesperson said.
Published By – Damandeep Singh
Edited By- Kritika Kashyap
