HYDERABAD: The famed Sirpur Paper Mills will get a new lease of life, as National Company Law Tribunal (NCLT) has given nod for JK Paper’s resolution plan for the revival of the defunct integrated paper manufacturing facility.
Located at Sirpur-Kaghaznagar and established in 1938, it is one of the largest and oldest integrated paper manufacturers in India but stopped functioning in 2014 as it ran into financial problems, leaving more than 1,200 direct employees and 4,000 indirect dependents stranded without a livelihood.
Now NCLT order comes as a huge relief to not just the employees of Sirpur Paper Mills but also for its creditors and Telangana government, which has been making efforts for its revival.
JK Paper’s resolution plan involves payment of 340 crores to the secured financial creditors and it is expected to invest about `782 crores for the revival of paper mills.
In fact, the State government had been closely pursuing Sirpur Paper Mills revival and had even brought in GO 18 to provide various concessions and incentives for JK Paper to successfully revive the defunct paper mills.
“We have been closely pursuing the revival of Sirpur Paper Mills as it will benefit more than 1,200 direct and 4,000 indirect employees. We have discussed with several companies and creditors, including institutions like IDBI for revival. Telangana government will provide all the necessary support for JK Paper to successfully reopen Paper Mills,” Industries Minister KT Rama Rao said.
Forest Minister Jogu Ramanna and Sirpur MLA K Konappa met KTR and expressed gratitude for working towards the revival of Sirpur Paper Mills.