State government assures help for MPM revival

SHIMOGA: The state government has assured of taking measures to revive Mysore Paper Mills (MPM) from the clutches of the Board for Industrial and Financial Reconstructions (BIFR). MPM Ch

Published: 19th April 2012 03:18 AM  |   Last Updated: 16th May 2012 07:37 PM   |  A+A-

SHIMOGA: The state government has assured of taking measures to revive Mysore Paper Mills (MPM) from the clutches of the Board for Industrial and Financial Reconstructions (BIFR).

MPM Chairman Araga Jnanendra confirmed to Express that the company was registered with BIFR recently. As the company was reeling under loss for the past 3-4 years, it was referred to BIFR under Section 15(1) of the Act, on the basis of the company’s accounts as on March 31, 2011.

By the end of 2011-12, MPM’s net loss exceeded `235 crore. MPM, a state-owned public sector company, was incepted in 1936.

Both the paper and sugar mills were established in 286 acres along with a township for employees. The company was accorded ISO 14001 certification.

The state government declared a grant of `100 crore to revive MPM during the tenure of former chief minister B S Yeddyurappa. The amount was converted as share capital.

With this additional funds, total capital increased to `218 crore and the government provided bank guarantee too.

“It was a Herculean task to end the mismanagement, but in the past three years it has been streamlined to a major extent,” he said.

He said the cost of production is more compared to private industries. Thus, it  incurred a loss of `8,000 to `10,000 per tonne of paper produced.

This was a major jolt the company received while marketing its product, said Jnanendra.

The private companies with the same capacity of paper production have maximum manpower of 1500, he added.

“We need to focus on hiring technocrats and reducing additional manpower,” said Jnanendra.

According to him, the state government was requested to waive  the interest accrued on a loan of `100 crore and convert `100 crore capital in the form of shares to refine organisational  structure.

“We request the government to announce VRS (Voluntary Retirement Scheme) for employees, which many of them will opt for. Onus is on the management to take MPM from the custody of BIFR by reducing man power, introducing new technology and ensuring good administration,” he said.

Stay up to date on all the latest Karnataka news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp