Lok Sabha Question No. 2266 (UNSTARRED), answered on 2019-07-08
Subject: Revival of Ashok Paper Mill
Ministry: CORPORATE AFFAIRS
Asked by: Abdul Khaleque

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO.  2266

ANSWERED ON MONDAY, THE 8 th  JULY, 2019/ ASHADHA 17 , 1941 (SAKA)

## REVIVAL OF ASHOK PAPER MILL

## QUESTION

2266: SHRI ABDUL KHALEQUE

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a)  whether  the  Government  assured  in  Assam  Accord  that  they  will revive Ashok Paper Mill; and
- (b) the steps taken/being taken by the Government till now to revive the said paper mill?

## ANSWER

## FOR FINANCE

## THE MINISTER OF STATE AND CORPORATE AFFAIRS

वित्त एिं कॉर्पोरेट कार्य मंत्रालर् में राज्र् मंत्री

( SHRI ANURAG SINGH THAKUR )

(श्री अनुराग स ंह ठाक ु र)

- (a): Ministry  of  Home  Affairs  (MHA)  has  indicated  that  a s  per  Memorandum of Settlement (Assam Accord), 'Central Government will render full assistance  to  the  State  Government  in  their  efforts  to  reopen  Ashok Paper Mill'.
- (b)  State Government of Assam has taken following measures to revive the Ashok Paper Mill (Assam) Limited (APM), Jogighopa:
- I. The APM was leased out to M/s Sanghi Textile Ltd. (STL), Hyderabad for a  period  of  25  years  w.e.f  01.04.1995  with  the  financial  support  of  Rs. 8.97 crore but the STL failed to continue production activities due to lack of  expertise  management  in  running  paper  mill  and  other  reasons  and abandoned the mill on 07.04.1999. APM was leased out to M/s North East Paper & Industries Ltd. (NEPIL) w.e.f. 02.08.2000 with a financial support of Rs. 2.97 crore. The NEIPL also failed to show the desired results.

कॉर्पोरेट कार्य मंत्री

II.  After  failure  of  two  attempts  made  for  revival  of  the  Mill  through private parties, State Government of Assam proposed to revive the Mill through  M/s  Hindustan  Paper  Corporation  Ltd.  (HPC),  a  Government  of India undertaking. After detailed discussions during several meetings, it was decided that the feasibility of developing viable alternative industries at the site of APM  utilizing other  locally  available  raw materials  such  as  coconut  or  jute  will  be  explored.  Further,  a  Detail Project  Report  (DPR)  for  'APM  Integrated  Economic  Zone  and  Cluster Package' was prepared and floated in local and national English dailies in  2018.  But,  no  response  was  received  from  any  party.  However, discussions  are  still  going  on  with  few  investors  who  have  shown interest in the paper mill.

III. Meanwhile, the Central Government released an amount of Rs. 44.45 crore  to  the  Ashok  Paper  Mill,  Assam  on  10.02.2016  as  One  Time Settlement  and  clearing  other  loan  liabilities  in  pursuance  of  Hon'ble Gauhati High Court Order dated 27.11.2014.

IV.  As  Jogighopa  is  strategically  located  and  the  land  of  APM  has  not been used since last almost 40 years, State Government of Assam also proposed to develop a Multi Model Logistic Park/Hub (MMLP) at APM in 2018 and approved to provide 200 acre of land out of APM's total 2200 Bigha land for the project. However, in view of the Assam Accord clause, Paper Mill land area of approx. 60 Bigha land is not included in the 200 acre  of  land  proposed  for  MMLP.  This  will  not  only  create  ample employment opportunities in the lower Assam but will change the entire economy in the State.

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