This package includes the infusion of Rs 277 crore as equity into the company for the completion of RMDP which shall enhance production capacity to 1,00,000 MT per annum from the present capacity of 83,000 MT per annum, diversify production, improve quality of products and also help resume production at Nepa Ltd. The RMDP is expected to be completed within a year.
The plan for strategic disinvestment of NEPA Ltd has, however, not been shelved and will be taken up after the completion of the RMDP at an appropriate time
A loan of Rs 101.58 crore has also been approved for the payment of salary, wages, etc. in order to mitigate the hardship being faced by the company’s employees. A sum of Rs 90.83 crore was approved for the voluntary retirement scheme of 400 employees.
The plan for strategic disinvestment of NEPA Ltd has, however, not been shelved and will be taken up after the completion of the RMDP at an appropriate time. The RMDP will help Nepa Ltd. to command a better presence in the market besides supporting employment in the tribal belt of Madhya Pradesh, a statement released by the government said.
Nepa Ltd is a pioneer newsprint company located in Madhya Pradesh’s Burhanpur district and was incorporated in 1947. It was the only newsprint manufacturing unit in India up to 1981. The revival and modernisation plan is expected to enhance the production capacity of the PSU and diversify its product portfolio.