Government firmed 1,000 crore plan to revive Hindustan Paper Corporation

Vastavam web: The government has firmed up a Rs 1,000 crore plan to revive Hindustan Paper Corporation through involvement of private sector in certain activities and settlement of dues, official sources said.The go-ahead to the revival plan was given at a meeting of the inter-ministerial group chaired by the prime minister earlier this month, the sources said.”A Cabinet note is being prepared for settlement of the company’s liabilities to the tune of Rs 1,000 crore, including payment of salaries to its 1,500 odd employees (barring Hindustan Newsprint Ltd) and clearance of outstanding statutory bank liabilities,” a senior Heavy Industries Ministry official told PTI.
Employees of Nagaon and Cachar paper mills belonging to central PSU Hindustan Paper Corp which comes under the administrative control of the Department of Heavy Industries, have not paid salaries for 10 months and a year, respectively.”There was a brainstorming meeting chaired by the prime minister wherein it was decided that while retaining the public sector character of Hindustan Paper Corporation, contracts will be given to private players for carrying out procurement and due diligence activities,” the official said.
While roping in private players is a practice commonly followed by state-run PSUs in the services sector, it is a “paradigm shift” for companies operating in the manufacturing sector, the official added.HPC group has four paper mills, two of which are units and two are subsidiary companies. HPC is the holding company for Hindustan Newsprint Ltd and Nagaland Pulp & Paper Company.