BJP MPs for revival of Assam paper mills

All nine newly-elected BJP MPs from Assam on Wednesday moved Union heavy industries ministry seeking steps for revival of two closed paper mills under HPCL, amid strong demand by the workers.

In a memorandum to Arvind Ganapat Sawant, the Union heavy industries minister, the MPs said the PSUs could be revived either under Public Private Partnership (PPP) or private takeover, as over 12,000 workers are facing an uncertain future.

The move comes days after the National Company Law Appellate Tribunal’s (NCLT) directive to the liquidator of the paper mills to approach the government for a revival package and release the workers’ pending salaries.

“We strongly believe that the scope of making HPC a viable company still exists, if it is run by efficient professional management with proper modernisation, technological upgradation and financial restructuring. This can be carried out by either implementation of PPP model or private takeover initiative” they said.

The two mills, Cachar Paper Mill and Nagaon Paper Mill, have been lying non-functional since October 2015 and March 2017 respectively. Their workers have not received salaries for more than two-and-a-half years.

The NCLT ordered their liquidation on May 2 this year.

Cachar Paper Mill, the only major industrial undertaking in south Assam's Barak Valley, is located at Panchgram in Hailakandi district. Nagaon Paper Mill is located at Jagiroad in Morigaon district.

The MPs said Nagaon Paper Mill at Jagiroad was the first paper mill in the world to produce kraft pulp with 100% bamboo as raw material.

Production in the mill stopped in 2015-16 and closed down in March 2017 due to heavy losses and lack of working capital. Similarly, operations in Cachar Paper Mill was also stopped in 2015 and workers in the two mills have not received their pending salaries.

“Both the paper mills’ closure has rendered destitute,” they said.

Three employees of Nagaon Paper Mill committed suicide due to non-release of salaries for long.