Sirpur Paper set to roll again

​Hyderabad: One of the oldest paper mills in the country, the Sirpur Paper Mills is all set to resume its operations soon. The Telangana government has given its nod to the JK Paper Ltd to revive the paper manufacturing unit shut down in 2014 and announced incentives for its revival.

The State Industries department announced tailor-made benefits to the JK company as directed by a group of Telangana ministers and the same was also approved by the state Cabinet in the recent meeting presided by Chief Minister K Chandrasekhar Rao.

The integrated pulp and paper mill, one of the largest manufacturers of varieties of colour paper was established in 1938 in Sirpur-Kagaznagar in Adilabad district. It is now owned by RK Poddar and has stopped production since October 2014 leaving thousands of workers jobless.  The Telangana government has put the sick industry for sale soon after the bifurcation of Andhra Pradesh.

The government agreed to reimburse SGST (State GST) to the buyer for 19 years and also 100 per cent exemption from stamp duty.  The other benefits extended to the company for the revival of the sick industry included, capital subsidy up to 20 per cent of investment subject to a maximum Rs 50 crore and supplying debarked eucalyptus or subabul at a concessional price.

The order said preference would be given to the company in supply of copier or maplitho paper to Telangana Government at market rates. The company was asked to pay all pending dues of the workmen and employees and government dues claimed to be settled in proportionate to the other operational creditors. The company will also use its plantation expertise to increase the overall green cover of the region and farm income, by providing livelihood to more than 10,000 families over a period of time.