GUWAHATI: Poor response from the bidders for the revival of the defunct Cachar Paper Mill, even as there was a good response for procurement of plant and machinery from Nagaon Paper Mill, Assam Assembly was informed on Monday
Responding to a starred question from Congress member Kamalakhya Dey Purkayastha, Assam industries and commerce minister Bimal Bora said that on November 16, 2022, the state government issued an expression of interest and notice inviting bidders for a 30-year lease of machinery and land of Cachar paper Mill in Panchgram along with the township.
The notice issued by Assam Industrial Development Corporation (AIDC) also invited bidders for the sale of the plant and machinery of Nagaon Paper Mill at Jagiroad without land on an “as is where is” basis. The bidding process started online on November 16, 2022, on January 9, 2023. Later, the date was extended to January 25.
“There is no response from the bidders to take over the Cachar Paper Mill. The bidders are interested in taking over the plant and machinery without land of Nagaon Paper Mill,” said Bora.
On March 28, 2022, the state government has taken over the assets of the Nagaon and Cachar paper Mill from Hindustan Paper Corporation (HPC) as the AIDC was declared the successful bidder.
The Cachar Paper Mill has been closed since October 2015 while Nagaon Paper Mill has been closed since March 2017. Both the mills are under liquidation proceedings on account of non-clearance of dues of financial and operational creditors as per the order of the National Company Law Tribunal (NCLT), Delhi dated November 25, 2019, the minister informed.
“Based on the liquidation report, the employees of the two paper mills were paid their pending dues along with 96 per cent gratuity,” the minister claimed.
“The value of movable and immovable assets of Cachar Paper Mill is ₹652.585 crore, while that of Nagaon Paper Mill is ₹1,400.301 crore,” Bora said
The land area of the paper mill at Nagaon Paper Mill is 1765 bigha, 33 katha and 24 lessa, and the land area of Cachar Paper Mill is 2916 bigha, 1 katha and 7 lessa. The total land area of both the paper mills is 4681 bigha, 34 katha and 17 lessa.
Most of the industrial sheds and machinery of the two paper mills have depreciated and are now unfit for use.