Trouble for Nagaon and Cachar paper mills as HPCL declares bankruptcy

Troubles never seem to cease for the Nagaon and Cachar paper mills. In recent turn of events, Hindustan paper Corporation Limited (HPCL) has declared bankruptcy. Revival of the two paper mill that operate under the HPCL, hence, have become a far-fetched dream.

This declaration implies the closure of both mills; however, no formal announcement has been made about the same.

It may be mentioned here that a company had approached the National Company Law Tribunal (NCLT) after not receiving their dues from the Cachar Paper Mill. Subsequently, an IRP (Interim Resolution Professional) to look into the matter; report shall be submitted on July 16, 2018.

With the Cachar Paper Mill already declared bankrupt, a situation may arise where HPCL might have to sell off its properties to pay the dues.

Employees have alleged the government of not releasing revival funds and that the HPCL have declared bankruptcy intentionally. Many have also demanded CBI investigation into the matter.

Earlier this year, three months' salaries were released by the government for employees of the mills; Assam Chief Minister Sarbananda Sonowal and Commerce and Industry Minister Chandra Mohan Patowary had also assured the employees of reviving both the mills. However, as per reports, the Central Government shall formally declare bankruptcy of the mills by December this year.