NEW DELHI, Dec 7 � The Ashok Paper Mill (APM) has been all but junked and a Rs 2500 crore green field project has been proposed instead. But the new project too faces uncertainty, as Hindustan Paper Corporation (HPC) has expressed its inability take it up, citing resource crunch.
The HPC in its latest communication to the State Government last month, has conveyed that they do not have requisite resources to contribute towards the project cost and will have to depend on Government of India for equity and commercial banks for long-term loans backed by Central Government guarantee, lobbying the ball back into the court of the State Government and the Centre.
Revival of the APM will be feasible only if the Detailed Project Report is finalized, mode of revival is decided, an appropriate implementing agency is appointed and sources of financing the revival scheme are finalized in consultation with all concerned, Minister of Heavy Industries and Public Enterprises, Vilasrao Deshmukh said in reply to an un-starred question by Kumar Deepak Das.
All the issues relating to revival of the Mill are being discussed with Government of Assam and concerned ministries of the Union Government for expeditious finalisation, he added.
Chief Minister Tarun Gogoi in a fresh attempt to revive the project had on October 13 written to Commerce and Industries Minister, Anand Kumar that the State Government have prepared a final DPR for a green field project at the same location at a tentative cost of Rs 2500 crore.
The Chief Minister�s letter further mentioned that the HPC could be interested in taking up the new project, if capital investment subsidy (CIS) announced as under the NEIPP, 2007 is made available to HPC, as a special case.
However, Department of Industrial Promotion and Policy (IPP) has commented that since the CIS are not given to public sector undertakings, the CIS could be in the shape of equity. It suggested that a DPR may be prepared for further examination of the options of government assistance and requirement of funds.
It was in response to this that the HPC expressed its inability to takeup the APM Project, if the CIS is not made available.
In November, 2007, Ministry of Home Affairs entrusted Ministry of Heavy Industry as the nodal ministry for revival of the Mill. An international consultant M/s Sandwell Consulting Engineers Private Limited was engaged by HPC for preparation of Techno-economic Feasibility Report and DPR at an estimated cost of Rs 1.16 crore.
Based on the consultant�s report, a green-field project of 2 lakh tonne per annum capacity manufacturing writing paper and printing paper with an envisaged investment of Rs 2476.
Revival of the paper mill was part of the Assam Accord signed in 1985 and initially the Centre granted a financial package of Rs 67.08 crore and subsequently, an MoU was signed with Sanghi Textiles Limited in 1995 and later in 2000, Soneko Paper and Industries was appointed to run the Mill.
