DIMAPUR, JULY 9 (MExN): Union Minister of Heavy Industries & Public Enterprises, Arvind Ganpat Sawant has confirmed that the National Company Law Tribunal (NCLT) has ordered liquidation of the Hindustan Paper Corporation Ltd. (HPC), of which the Tuli Paper Mill is a subsidiary. The mill has been non-operational since 1992.
The Minister said this in response to questions posed by Nagaland State MP to the Lok Sabha, Tokheho Yepthomi in Parliament on July 2. The MP had asked whether the Government has started the process of revamping the Tuli Paper Mill in Nagaland; if so, the details thereof and the progress made so far in this regard; and if not, the time by which the revamping work is likely to be commissioned?
In response, the Union Minister revealed that NCLT through an order dated June 13, 2018 had directed the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016 against the HPC.
“The NCLT, during the hearing of the case on May, 2, 2019 has ordered for the liquidation of HPC,” he stated.
It may be noted that the liquidation of the enterprise was informed during a monthly District Planning and Development Board (DPDB) of Mokokchung held on July 5.
According to a DIPR report, the DPDB Chairman Imnatiba, who is also in charge of the Industries department, hinted that the paper mill is on the verge of liquidation and all stake holders needed to be aware of the situation.
The mill has seen several revival plans over the years, but none has managed to revitalize Nagaland’s sole heavy industry unit. In 2018, the Comptroller and Auditor General (CAG) found that more than half of the fund meant for the mill’s revival was diverted by HPCL and adjudged this as “improper conduct” which adversely affected implementation of the mill’s revival plan.
HPC’s mills in Assam - Cachar Paper Mill, Panchgram and Nagaon Paper Mill, Jagiroad are also under similar fate, Sawant informed the Lok Sabha in another a written reply on July 9.
