The blaze, which erupted yesterday evening and swiftly engulfed the country's fourth largest paper mill, located in the city, was extinguished this morning, officials said.
Firefighters aided by Army, IAF, Airport Authority, police and NDRF personnel battled the leaping flames all through the night, Amritsar Deputy Commissioner Rajat Agarwal said.
The blaze was finally doused this morning, said the DM, camping at the scene.
Khanna Paper Mill Director Suneet Kochar said the devastating fire had crippled the operation of the factory and damaged property worth Rs 250 crore.
As many as 75,000 metric tonnes of papers were reduced to ashes, he said adding the export of newsprint to Pakistan was also hit.
Kochar said there was no loss of life and all labourers and staffers were safe.
He said Chief Minister Parkash Singh Badal spoke to him twice and assured all help.
The mill, which supplies newsprint to major dailies in the region, is India