TS Govt GO On Reopening Sirpur Paper Mills

Telangana |  Suryaa Desk  | Published : Thu, Mar 22, 2018, 01:54 PM

Sirpur Paper Mills which located at Kagaznagar town in Kumram Bheem Asifabad district is  suspended production of paper in October 2014, incidentally became the first factory to close down after formation of Telangana State. The closure had thrown the lives of the 2,000 regular staff and workers and 1,300 contract workers in disarray.The  State government of Telangana issued an order G.O. Ms 18, announcing tailor-made concessions which usually apply for mega projects, to the JK Paper Limited which has come forward with a proposal to revive the closed Sirpur Paper Mills at Kagaznagar town in Kumram Bheem Asifabad district. The paper company has proposed the revival plan with an outlay of 628 crore on Wednesday.


The proposal was accepted at the 37th meeting of Group of Ministers on March 14. The decision of the Cabinet and the GO issued subsequently demonstrates the government’s keenness to facilitate reopening of one of the oldest paper manufacturing units in the country, according to Sirpur MLA Koneru Konappa.


The SPM, which suspended production of paper in October 2014, incidentally became the first factory to close down after formation of Telangana State. The closure had thrown the lives of the 2,000 regular staff and workers and 1,300 contract workers in disarray.


There have been a couple of suicides of workers since then, owing to the hardships faced by them. The entire staff and work force found it difficult even to pay the school fees of the children. The GO states that JK Paper Limited has assured of protecting direct jobs of 1,200 staff and workers plus contract workers who are numerically equal. The industry has also promised in its proposal to provide livelihoods to about 10,000 families by use of its expertise in plantation of trees.


Among the main concessions that the government announced as the tailor-made benefits to the JK Paper Limited is 100 per cent gross State GST reimbursement for 10 years and 100 per cent exemption on stamp duty. The government facilitated exemption of electricity duty for 10 years in addition to reimbursement of power cost at ? 3 per unit for three years.


Among other important concessions are the capital subsidy at 20 per cent of investment subject to a maximum of ? 50 crore, supply of coal at a concession of ? 1,000 for 10 years, interest subvention of 2 per cent per annum on amount of new investments for 5 years. Also, the government has agreed to reimburse the liquidation value of workmen’s priority dues while reimbursement of all other dues to be decided by it later.


SPM was an integrated pulp and paper mill, started in 1938 by the then Nizam’s government.








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