Company law board to help paper mill come out of the red

The Hyderabad bench of the National Company Law Board today accepted the resolution plan submitted by JK Paper Limited to take over Sirpur Paper Mills Limited in Telangana.

The resolution plan was approved by the committee of creditors (CoC) led by IDBI Bank at a meeting held on April 30.

The Sirpur Paper Mills, located in Kagaznagar town in Kumran Bheem Asifabad district of the State, owes over Rs 500 crores to the creditors.

The State government, through an order extendedseveral sops to the sick mill, includinggoods and service tax reimbursement, stamp duty exemption, capital subsidy on investment, interest subvention and electricity duty of over 10 years, among others.

Reacting to the company law board order, State Minister for IT and Industries KT Rama Rao, expressing happiness over the development, said the government has been trying to revive the sick units in the State.

He said there have been several attempts to revive Sirpur Paper Mills (SPM) over the last three years and added that representatives from the government visited Ahmedabad, Mumbai, Kolkata, among other cities, and held talks with various companies for the revival of the sick unit.