New Delhi, June 4 (ANI): The Cabinet Committee on Economic Affairs (CCEA) today approved the revival of the Nagaland Pulp and Paper Company Limited (NPPC) through infusion of funds of Rs.309.38 crore, regularization of inter se diversion of fund of Rs.54.60 crore, and increasing the authorized capital of NPPC from Rs.150 crore to Rs.250 crore.
The CCEA also gave its approval to avail term loan of Rs.156.50 crore from commercial banks against government guarantee.
The revival plan consists of rebuilding/re-furbishment of paper machine, pulping mill, new power plant etc. The company would produce both pulp and paper in the first phase. With the implementation of the revival plan, the net worth of the company will become positive and it will start posting profit from the first year after implementation.
The company will start making profit on sustained basis 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 the Board of Industrial and Financial Restructuring (BIFR). (ANI)