Sirpur Paper Mills to go under the hammer
One of India’s oldest industries is unviable, says state
After the Nizam Sugar Factory, yet another factory, among the oldest industry in the country, is set to disappear from the state.
The TS government had earlier promised to provide financial assistance to the Sirpur Paper Mills Ltd. so that it could be reopened after being shut down in 2014. However, the government has now gone back on its promise on the ground that reopening of the mill was financially unviable.
With this, the banks have put the mill up for auction, to be held midFebruary, to recover the over `400 crore loan arrears from the private management.
The company has 2,000 staff and workers besides 1,000 contract workers, who lost their livelihood on account of the closure.
The government recently told the Legislative Assembly that reopening of the Nizam Sugar Factory was also not possible because it was financially unviable.
The mill was an integrated pulp and paper mill, one of the largest manufacturers of variety and colour paper. It was started in 1938 in Kagaznagar town in Adilabad district.
The mill is now owned by R.K. Poddar and has stopped production since October 2014.
The IDBI had taken over physical possession of the mill and other properties in October 2016.
Local TRS MLA Koneru Konappa has been making attempts to convince the government to reopen the mill since then.
“We hope someone takes over the mill in the auction and reopens it. I met the CM and industries minister K.T. Rama Rao several times over the issue. They promised to provide all the benefits that are being extended to all the industries under TS-iPASS,” Mr Konappa said.
However, the participants in the auctions are learnt to be showing interest on the over 200 acres of land owned by the company rather than reopening the mill.
The government held talks with prominent paper mills to take over the mill last year. However, the mills sought an over `250 crore package to revive the mill. This led to the government backing out.