Providing grant to Hindustan Paper Corporation for meetings additional operational costs

No: ----- Dated: Feb, 28 2014

Providing grant to Hindustan Paper Corporation for meetings additional operational costs

The Cabinet Committee on Economic Affairs has approved support of approximately Rs. 75 crore per annum on actual basis to Cachar Paper Mill (CPM), a unit of Hindustan Paper Corporation Limited (HPC) located in Panchgram, Hailakandi District, Assam as grant. This shall be to the extent of 90 percent of the transportation cost for meeting operational costs till such time that the gauge conversion of the Lumding-Silchar railway line is completed.

Due to poor rail and road network, transportation of raw material as well as finished product to and from CPM is very difficult and cost of transportation is much higher compared to other competing paper mills which are not facing these locational difficulties. This denies a level playing field to HPC. Providing grant to the tune of 90 percent of the cost of transportation that CPM has to incur would enable CPM to become viable and competitive. This will ensure security of the future, of not only the employees of the mill, but also people living around the mill.