CCEA approved Revival of Nagaland Pulp and Paper Company Limited
CCEA on 4 June 2013 approved the revival of the Nagaland Pulp and Paper Company Limited (NPPC) with the infusion of funds of 309.38 crore Rupees.
The Cabinet Committee on Economic Affairs (CCEA) on 4 June 2013 approved the revival of the Nagaland Pulp and Paper Company Limited (NPPC) with the infusion of funds of 309.38 crore, Rupees.
The Committee also approved the regularization of inter se diversion of fund of 54.60 crore, rupees and had increased the authorized capital of NPPC from150 crore rupees to 250 crore Rupees.
To avail term loan from commercial banks against government guarantee a sum of around 156.50 crore was also approved by the committee.
About Revival Plan
The revival plan includes rebuilding/re-furbishment of paper machine, pulping mill, new power plant etc.
• The company is supposed to produce both pulp and paper in the first phase but after with the implementation of the revival plan, the net value of the company will become positive and it will start posting profit from the first year after implementation.
• The company will start making profit on continuous basis and its reliance on Government of India for financial assistance for disbursement of salary and wages and statutory dues to employees shall come to an end, it will come out of the purview of the Board of Industrial and Financial Restructuring (BIFR).