Assam to spend Rs 810 cr to settle defunct paper mills issues: CM Sarma

Assam spends Rs 810 cr on paper mills problems: CM Sarma

Guwahati: The Assam government will spend Rs 810 crore to resolve issues relating to two defunct paper mills of Hindustan Paper Corporation Ltd, Chief Minister Himanta Biswa Sarma said on Thursday.

Sarma stated that banks will need to pay Rs 150 crore while Assam Power Distribution Company Ltd. (APDCL), around Rs 60-60 crore. The rest will go to the Nagaon, Cachar and Panchgram paper mill employees.

At Guwahati’s ceremonial distribution of relief packages to employees at paper mills, he said these words.

Sarma stated that the Assam government would regularise pensions for retired workers by depositing the amount which the HPCL must have paid with the Provident Fond Commissioner.

He further said Assam government will also pay the gratuity amount, while the salary of the employees will be deposited by the liquidator.

An appointment letter was sent to all 66 paper mill workers in government departments.

The trust will have a corpus in excess of Rs 25 Crore. Any interest it earns will go to former employees who are facing distress.

HPCL’s two paper mills Cachar Paper Mill and Panchgram in Hailakandi district, and Nagaon Paper Mill at Jagiroad in Morigaon district have been non-functional since October 2015 and March 2017 respectively, with employees not receiving salaries for the past five years.