Assam govt takes over assets of HPCL’s Nagaon, Cachar paper mills at cost of ₹375 cr

After long and sustained efforts, dialogues and meetings, the Assam government on Monday finally took over the assets of two closed paper mills of Hindustan Paper Corporation Limited (HPCL) located at Jagiroad in Morigaon district and Panchgram in Hailakandi district.

The government-owned Assam Industrial Development Corporation (AIDC) successfully bid for assets of both mills, which have been closed for several years, at a cost of ₹375 crore. On behalf of the Assam government, AIDC has taken over the assets of both mills, informed a government release.

Adil Khan, MD, AIDC and Moloy Ranjan Thakur, authorized person of official liquidator Kuldeep Verma signed an understanding on Monday in the presence of Chandra Mohan Patowary, minister for industry and commerce.

Although the Assam government had no stake in the paper mills, it has been trying to resolve the issue on “humanitarian grounds” for the sake of nearly 1000 workers of both mills who lost their jobs due to their closure.

Earlier Chief Minister Himanta Biswa Sarma had offered a relief package of ₹700 crore which included settlement of various outstanding dues of employees and workers of HPCL’s assets at both mills.

The release informed that the Assam government has paid the amount of Rs. 375 crore and it will be distributed by the liquidator as per the norms of Insolvency and Bankruptcy Code (IBC) 2016. The remaining amount of ₹700 crore will be utilized in clearing the dues of employees and workers of HPC.

“Assam government plans to develop the land to promote industrial and economic activities to accelerate the growth of the region,” the release said.

The Jagiroad and Panchgram paper mills 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. The total land area of both the mills is over 1550 acres.