The state government of Assam has provided a one-time assistance package for employees of Hindustan Paper Corporation (HPC) paper mills in the state.
This follows the NCLT liquidator's failure to get a response to a notification to e-auction the assets as a "going concern."
According to a report, the state administration informally offered to employees that it was prepared to arrange for the payment of their provident funds (PF), gratuity, and pensions as soon as possible. It also recommended paying salaries in instalments over a two-year period.
However, the government warned employees that after they receive their PF and gratuity, they must evacuate all quarters in Jagiroad township, Cachar paper mill township, and corporate office township in Kolkata's Salt Lake region.
The government also wants all HPC unions and organisations to debate the idea and reach an agreement as soon as possible.
On June 1, the liquidator posted an e-auction notice on the Metal Scrap Trade Corporation's webpage for the sale of the HPC (in liquidation) as a "going concern" for a reserve rate of Rs 1,139 crore.
The liquidator has dropped the reserve price to Rs 969 crore because no one has registered for the auction.
The Assam government's entire liabilities is now Rs 1,200 crore.
Meanwhile, the unpaid debts of the mills' 1,200 employees total about Rs 350 crore.
A recent hearing at the Delhi High Court revealed that PF funds totaling Rs 107 crore had not been paid to the EPFO.
Earlier, the Joint Action Committee of Recognised Unions (JACRU) Cachar and Nagaon Paper Mills, Assam has questioned Chief Minister Himanta Biswa Sarma whether he will save the HPC (Hindustan Paper Corporation) Mills as its auction price has now been reduced.
The JACRU stressed that it is against the national interest to import papers from China, Indonesia, Bangladesh by 'destroying' our industries.
"The government should respect its policy related to Atmanirvar Bharat and should discontinue importing papers from China and other countries at the cost of destruction of own National interest," it stated.