The government today approved financial support of around Rs 75 crore per annum to Cachar Paper Mill , a unit of Hindustan Paper Corporation Ltd, to meet its additional operating costs.
The grant shall be to the tune of 90 per cent of the transportation cost till such time that the gauge conversion of the Lumding-Silchar railway line is completed. Cachar Paper Mill is located at Panchgram in Hailakandi District of Assam.
The decision was taken at a meeting of the Cabinet Committee on Economic Affairs (CCEA).
"Providing grant would enable the Cachar Paper Mill to become viable and competitive. This will ensure security of the future, of not only the employees of the mill, but also people living around the mill," an official statement said.
Due to poor rail and road network, transportation of raw material as well as finished product to and from the Cachar mill is very difficult and cost of transportation is much higher compared to other competing paper mills, thereby denying a level playing field to Hindustan Paper Corporation.
