Comments
JK Paper is set to takeover the management of the ailing Sirpur Paper Mills, located at Kaghaznagar, with the resolution plan and and the approval of a consortium of lenders headed by IDBI, in the final stages.
JK Paper has come up with a ₹628-crore resolution plan.
Responding to the proposed move by JK Paper, the Telangana government had announced a slew of sops that would revive one of the important projects at Sirpur Paper Mills and help protect the jobs of over 1,200 employees directly engaged with the integrated paper mill.
A group of ministers which met last month, had recommended sanction of certain tailor-made benefits, which were then approved by the State Cabinet.
The Sirpur Paper Mills, an integrated paper and pulp mill, commenced operations in 1938 under the Nizam rule. The company is under the Corporate Insolvency Resolution Process as per the provisions of the Insolvency and Bankruptcy Code, 2016. The resolution professional appointed by the National Company Law Tribunal, Ram Ratan Kanoongo, had in December 2017 invited Expression of Interest for resolution plans. Jayesh Ranjan, Principal Secretary and Commissioner for Industrial Promotion, Telangana, told BusinessLine : “The takeover of the plant is at the advanced stage. The lenders headed by IDBI are in the process of finalising their approvals. We expect the takeover by the month-end.”
As part of the benefits extended under the mega project, Sirpur Paper Mills is being extended 100 per cent gross GST reimbursement for 10 years, 100 per cent stamp duty exemption and capital subsidy of 20 per cent of investment, subject to a maximum of ₹50 crore.
The government will also provide access to debarked eucalyptus/subabul at concession. It will facilitate securing a coal block by participating in an auction conducted by the State-owned Singareni Collieries Company.
Apart from providing interest subvention of 2 per cent per annum on the amount of new investments for five years, degraded forest blocks will be offered for plantations.
The company will be a preference supplier of copier/maplitho to Telangana government at market rates. Stamp duty and taxes on the transactions undertaken pursuant to NCLT order will be exempt.
The company will be exempted from electricity duty for 10 years and entitled for reimbursement of power cost, at ₹3 per unit, for three years.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.