core sector communique

Revival of M/s. NEPA Limited

The Union Cabinet gave its approval for revival of NEPA Limited through infusion of funds of Rs. 234.18 crore, waiver/conversion of Rs. 599.59 crore and reduction of equity share capital to the tune of Rs. 266.36 crore. The Cabinet also gave its approval for 1997 pay scales to the employees, enhancement in the superannuation age of employees from existing 58 years to 60 years, recruitment of Director (Finance), implementation of VRS and continuation of the present CMD till 30.11.2015 on attaining the age of 65 years. The revival plan consists of (i) product diversification by producing 46800 Tonnes Per Annum (TPA) of writing and printing paper and 36200 TPA of Newsprint with increased brightness of 57-60 degree instead of existing 38-42 degree by installing de-inking Plant and (ii) replacement of old 17 MW unit (established in 1949) which is producing only 2MW, with new 8 MW unit and upgradation of another 12.27 MW unit commissioned in 1989. With the implementation of the revival package, the Company will start making profit on sustained basis from the second year and its dependence on Government of India for financial assistance for disbursement of salary and wages and statutory dues to employees shall cease and it will come out of the purview of BIFR. This will ensure security of the future of not only the employees of the company but also the people living around the mill as the company is providing many facilities like drinking water, street light, maintenance of road, local market etc.