Hold talks with Centre before hearing & save mills: Saikia to CM Sonowal

GUWAHATI: Leader of Opposition of the Assam Legislative Council Debabrata Saikia has appealed to Chief Minister Sarbananda Sonowal to have some tangible talks with the Centre on the revival of Nagaon and Panchgram paper mills of HPC (Hindusthan Paper Corporation) before September 14, 2020 when the NCLT (National Company Law Tribunal) will hear the case of two paper mills and seal their fates.

In a letter sent to the Chief Minister on Saturday, Saikia said, "You are aware that during the recently concluded session of the Assam Legislative Assembly, I and my party colleagues raised the issue of reviving the Nagaon and Cachar paper mills. However, the response of Industries & Commerce Minister Chandra Mohan Patowary left a lot to be desired. Patowary stated in the House that some local entrepreneurs disappeared after preliminary discussions about operating the two paper mills. Nevertheless, as per my knowledge a memorandum was submitted to Commissioner and Secretary, Industries & Commerce Department K.K. Dwivedi on August 29 last, i.e. two days before the start of the Autumn Session of the House, which requested the Government of Assam to plead in favour of reviving the papers mills at the liquidation-related hearing at the NCLT on 14th September."

Addressing the Chief Minister, Saikia further said, "You personally stated in Jagiroad a couple of days ago that the Government of Assam would fight for revival of the paper mills till the end. The Government of Kerela has already pledged to bail out the sick HPC unit in that State. Similarly, the Government of Telangana has offered several concessions and incentives for the revival of a sick private paper mill owned by JK Paper Limited. The closure of the two paper mills of Assam has forced our country to buy paper at enhanced rates from China at a time when the Prime Minister is talking about 'self-reliant India'. Moreover, the closure of the paper mills has deprived around two lakh people, including bamboo suppliers, of direct and indirect employment. Around 70 employees of these paper mills have died so far as a result of poverty, depression and lack of proper treatment. Three among them committed suicide.

"It is pertinent to bear in mind that apart from corruption, the two other factors behind closure of the paper mills have been already mitigated. First, both the mills are now connected by broad-gauge railway tracks and, second, proper implementation of the National Bamboo Mission in Assam has ensured availability of adequate raw material for both the paper mills. The time is ripe for reviving the paper mills and, thereby, ensuring restoration of employment avenues and availability of good quality paper at comparatively cheap rates.

In such a scenario, it is incumbent upon the Government to redeem its promise of reviving the two paper mills of Assam. It is learnt that a consortium of local entrepreneurs have come forward to invest funds and operate the paper mills, provided the Government clears the arrear dues of the employees. The Government of Assam must immediately hold discussions with the Centre and arrive at a consensus regarding revival of the two paper mills on PPP basis, so that a formal proposal may be submitted to the NCLT before 14th September.

"In case the Government cannot decide at this moment as to whether it can provide incentives along the lines of the Government of Telangana, then I urge you kindly to at least send a letter to the NCLT before 14th September, requesting that any decision on liquidation should be deferred for some time as, in accordance with your commitment, the Government of Assam is interested in reviving the two paper mills and is trying to help some local entrepreneurs who are keen to invest funds for this purpose."

While Cachar Paper Mill at Panchgram has been closed since October 2015, Nagoan Paper Mill at Jagiroad has been closed since March 2017.

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