Question : Revival of HPC Mills

(a) whether the Government is aware of the fact that the two Hindustan Paper Corporation(HPC) Mills, one at Panchgram and another at Jagiroad in Assam, are closed for the last few years and there are strong public demands for revival of these two paper mills;

(b) if so, the action taken for reopening of the closed paper mills;

(c) whether the Government is planning to release the salary of the staff of the paper mills as the employees are not getting salaries for the last two years and if so, the details thereof; and

(d) whether the Government is considering to provide financial support to the employees of these paper mills as the employees are facing untold financial hardship and if so, the details thereof?

THE MINISTER OF HEAVY INDUSTRIES & PUBLIC ENTERPRISES
(SHRI ARVIND GANPAT SAWANT)

(a) to (d): A Statement is laid on the Table of the House.

STATEMENT

Statement referred to in reply to the Lok Sabha Starred Question No. *330 for answer on 16.07.2019 regarding Revival of HPC Mills raised by Dr. Rajdeep Roy and Shri Kripanath Mallah

(a)&(b): The Cachar Paper Mill, Panchgram and Nagaon Paper Mill, Jagiroad are mills of Hindustan Paper Corporation Ltd. (HPC) in Assam that have not been in operation for the past more than two years.

The National Company Law Tribunal (NCLT) through an order dated 13.06.2018 in a petition filed by an unsecured creditor of HPC, directed initiation of Corporate Insolvency Resolution Process (CIRP) against HPC under the Insolvency and Bankruptcy Code (IBC), 2016.

Thereafter, as per the provision of IBC, the Board of Directors of HPC stands suspended and a Resolution Professional (RP) and a Committee of Creditors are in place. The Chairman and Managing Director, HPC had filed an appeal in the National Company Law Appellate Tribunal (NCLAT) against the aforementioned NCLT order dated 13.06.2018, however, the said appeal was dismissed by Appellate Tribunal vide order dated 08.01.2019.

The NCLT during the hearing of the case on 02.05.2019 has ordered for the liquidation of HPC. Subsequently, in the appeals filed by the Officers Association and the Workers Union of HPC against the aforesaid order of the NCLT wherein the Union of India was not a party, the NCLAT has inter alia directed to process the liquidation of HPC as a ‘going concern’ and the Liquidator has also been directed to see whether financial support from the Consolidated Fund of India is permissible.

(c)&(d): There is no such decision.
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