Question : PRODUCTION IN CACHAR PAPER MILL

(a) whether the Government is aware that production in Cachar Paper Mill, a unit of Hindustan Paper Corporation Limited at Panchagram in Hailakandi District has been stopped;

(b) if so, the details thereof alongwith the reasons therefor;

(c) whether this paper mill has been shutting down every now and then for last few years due to shortage of raw material incurring huge loss;

(d) if so, whether the Government proposes to take steps so that raw material is supplied to this paper mill regularly to save it from closure; and

(e) if so, the details thereof?

MINISTER OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI PRAFUL PATEL)

(a) & (b): No, Madam. The production at Cachar Paper Mill has not been stopped. Regular rated production at CPM was getting affected on account of non-availability of principal raw material bamboo resulting to sub-optimal capacity utilization, but the scenario has now undergone a change as the flow of bamboo started improving resulting in optimum utilization of capacity presently.

(c): Yes, Madam. Since raw material was not available on continuous basis, CPM had to operate on intermittent basis.

(d) & (e): Several efforts have been made to ensure that raw material is available to this unit regularly to save it from closure. Govt. of Mizoram has been pursued continuously to lift the restriction imposed by the State on supply of bamboo to CPM. After sustained follow up, Govt. of Mizoram has finally agreed to supply bamboo to CPM. With the resumption of supply of bamboo from Mizoram from end of December, Cachar Paper Mill has started operating on a sustained basis. Moreover, Department of Heavy Industry has provided working capital support for Cachar Paper Mill.