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Concerned over delays in revival of sick newsprint company NEPA, the Board for Reconstruction of Public Sector Enterprises has asked the Ministry of Heavy Industries to expedite the process.
The Board asked the ministry, which is the administrative authority of Madhya Pradesh-based NEPA, to examine the reasons for delay in implementation of the company's revival plan.
"The ministry should examine the reasons for delays in implementation of the revival plan of NEPA and address them expeditiously," a BRPSE official told PTI.
Besides, he added, the Board has asked the PSU to consult the ministry to work out an implementation strategy and draw a plan to complete the revival before 2015.
On September 6, 2012, the government had approved a revival package of Rs 833.73 crore including cash assistance of Rs 234.18 crore and non-cash assistance of Rs 599.59 crore. Also, Madhya Pradesh government approved assistance worth Rs 64.19 crore.
BRPSE noted that 12 months, out of the two years of the implementation period, are over but there has been no substantial progress. It said that the basic assumption of completion in 24 months with cut off date is not being met which can lead to cost overrun.
During 2012-13, NEPA losses increased to Rs 83.45 crore from Rs 70.40 crore in the previous year.
Further, the board advised the Department to monitor on a quarterly basis implementation of the plan and performance of the company and take remedial measures, if required.
The ailing PSU has offered Voluntary Retirement Scheme (VRS) to its employees and relieved 378 employees using Rs 54.87 crore (cash-assistance). As on date, the company's manpower is 797.
NEPA, which pioneered manufacturing of newsprint, commenced production in April 1956 with an installed annual capacity of 30,000 tonne through sourcing raw materials from captive Salai wood and bamboo.
