The Madhya Pradesh government is likely to turn down the Union government’s bid to resuscitate the ailing Nepa Mills in Madhya Pradesh as it does not see it as a viable solution.
Nepanagar-based Nepa, which manufactures newsprint of 42 GSM and 44 GSM quality from waste paper, has an outstanding of Rs 66 crore in terms of various dues like entry tax, electricity duty, cess and other taxes.
The Centre had recently floated a Rs 975-crore revival plan for Nepa Mills and has consented to convert Nepa’s accumulated losses into equity and waive off interests. It also wants a similar response from the MP government to clear decks for its revival.
"Why should we consider a proposal which is not viable, they should come up with a viable proposal. If they (Nepa management) have any plan to manufacture new products like writing and printing papers, it may be considered. The state government would not buy any idea which has no potential," a well placed source in the government said.
State finance minister Raghavji on Friday also told Business Standard, "They had come earlier with similar demands and we had turned them down. Why should we consider such demands which have no weightage."
The state government has reportedly got a different plan if the Union government puts Nepa on sale. “They should sell Nepa and allow us to utilise the land for different purpose, it would be more viable,” said another official in the government. “The other newsprint manufacturers in India have also diversified. The Nepa land can be utilised for other manufacturers, social forestry, resorts etc.
Nepa Mills and township sprawls over 1,500 hectares of land. Government sources said that an apex empowered committee on investment, headed by state chief minister, would consider the proposal.
Founded way back in 1947, Nepa’s accumulated losses have reached Rs 574.03-crore and the Union government has given its consent to convert losses into equity and waive off interests on it.
