Assam government has announced a one-time relief package offer for the employees of Hindustan Paper Corporation (HPC) paper mills in the state.
This comes after NCLT liquidator failed to get a response on a notice to e-auction the assets as "going concern".
As per a report, the state government informally proposed to the employees that it was willing to arrange for clearing their provident funds (PF), gratuity and pensions at the earliest. It also proposed to give out salary for two years but in instalments.
However, the government informed that employees must vacate all quarters in Jagiroad township, Cachar paper mill township and corporate office township at Kolkata's Salt Lake area, once they receive the PF and gratuity.
The government also wants all unions and associations of the HPC to discuss the proposal and come to an agreement at the earliest.
On June 1, the liquidator had issued e-auction notice at the portal of the Metal Scrap Trade Corporation for sale of the HPC (in liquidation) as 'going concern' at a reserve rate of Rs 1,139 crore.
As nobody registered for the auction, the liquidator has reduced the reserve price to Rs 969 crore.
The total liability of Assam government now stands Rs 1,200 crore.
Meanwhile, the outstanding dues of the 1,200 employees of the mills stand at around Rs 350 crore.
Recently, a hearing at the Delhi High Court mentioned that the PF amounting to Rs 107 crore were also not remitted to the EPFO.
