New Delhi: In what could be termed a respite for the over 1,200 employees of Jagiroad and Panchgram paper mills, the Delhi High Court stayed the proposed auction of the mills in Assam. The court also asked the Central government to submit an affidavit before the court within September 28 clarifying its stand on the revival of the two paper mills.
As per reports, the e-auctioning of the two mills was cancelled as no private entity deposited the requisite Rs 55 crore within June 15. Employees and officers of the mills had challenged the National Company Law Appellate Tribunal (NCLAT)'s nod to Hindustan Paper Corporation Limited (HPCL) for auction on June 30. The NCLAT had earlier passed an order on the two paper mills and directed the government to infuse funds to revive the paper mills. However, the government did not take action based on the order of NCLAT.
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Union Minister for Heavy Industries and Public Enterprises Arvind Sawant in June 2021, assured a delegation comprising Union Minister Rameswar Tali, Assam minister Pijush Hazarika and eight other MPs representing the state, that the ministry will try to revive the two prestigious paper mills in Assam.
Assam Congress had urged Prime Minister Narendra Modi to stop the auction of the mills. Assam Congress president Ripun Bora in his letter to PM Modi stated that the mills' auction would undermine the government's move to boost industry. He also said that it would be great injustice to employees and local economy which burgeoned around the industry through the years, as per reports.
Assam Chief Minister Himanta Biswa Sarma had a few months ago stated that the revival of the two closed paper mills requires an investment of about Rs 1,200 crore and added that there is no alternative to auctioning the two paper mills.
Panchgram paper mill in Barak Valley and Jagiroad paper mill have been non-operational for the last several years and about 1,200 workers of the two units have been without their dues for more than the last 56 months. The mills under HPCL were established in 1978 and both started their commercial production in the late eighties.
