 "Ravi Shankar Prasad")
The government has approved a Rs 4.69 billion package for the revival of closed NEPA mill in Madhya Pradesh, Union minister Ravi Shankar Prasad said Wednesday.
NEPA Ltd is a public sector newsprint company, incorporated in 1947.
"The Union Cabinet has approved a Rs 4.69 billion package for the revival and mill development plan (RMDP) of NEPA Ltd, a public sector newsprint company located in Nepanagar, Madhya Pradesh. The plant was closed in 1981," IT and Law Minister Ravi Shankar Prasad told reports after the Cabinet meeting chaired by Prime Minister Narendra Modi.
The move will ensure development of the tribal area, he said.
The decision for the package was taken by the Cabinet Committee on Economic Affairs (CCEA).
"The package includes infusion of Rs 2.77 billion as equity for completion of RMDP which shall enhance production capacity to 1,00,000 MT per annum from 83,000 MT per annum, diversify output, improve quality of products and also help resume production," an official statement said.
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Loan of Rs 1.01 billion for the payment of salary, wages etc to mitigate hardship being faced by employees.
It also includes a sum of Rs 908.3 million for the voluntary retirement scheme of 400 employees.
The strategic disinvestment of NEPA Ltd on completion of the RMDP at an appropriate time has also been approved, the statement said adding "The completion of RMDP will help NEPA Ltd to command a better presence in the markets besides supporting employment in the tribal belt of Madhya Pradesh.
