Cabinet approves budgetary support to Nepa Limited for the Revival
No: --- Dated: Oct, 03 2018
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval for providing a financial package of Rs. 469.41 crore for the Revival and Mill Development Plan (RMDP) of Nepa Limited, a public sector newsprint company located in Nepanagar, Madhya Pradesh.
Details:
This package includes:
- infusion of Rs.277 crore as equity in the company for the completion of RMDP which shall enhance production capacity to 1,00,000 MT per annum from the present capacity of 83,000 MT per annum, diversify production, improve quality of products and also help resume production at Nepa Ltd. The RMDP is expected to be completed within a year.
- A loan of Rs.101.58 crore has also been approved for the payment of salary, wages, etc. This will mitigate the hardship being faced by the Nepa Ltd. employees.
- A sum of Rs.90.83 crore was approved for the voluntary retirement scheme of 400 employees.
- The strategic disinvestment of NEPA Ltd. on completion of the RMDP at an appropriate time has also been approved.
- The completion of the RMDP will help Nepa Ltd. to command a better presence in the market besides supporting employment in the tribal belt of Madhya Pradesh.
Background:
Nepa Ltd. is a pioneer newsprint company located in district Burhanpur, in Madhya Pradesh. This company was incorporated in 1947 and was the only newsprint manufacturing unit in India up to 1981. This public sector company is currently undergoing a revival and modernization plan that shall enhance production capacity and diversify its product portfolio.
Courtesy – Press Information Bureau, Government of India