The Telangana Industries Minister KT Rama Rao has assured that all necessary efforts will be made to revive the ailing industrial unit of Sirpur Paper Mills Limited, located in Kagaznagar.
Following a review meeting the Minister had with bankers, and where representatives of two leading paper manufacturers ITC and JK Paper were present, Rao assured that all necessary support will be provided from the State Government in the efforts to revive the sick paper company.
During the meeting, where Jogu Ramanna, State BC Welfare Minister and others participated, it was highlighted that the paper mill, on whose functioning more than 2,500 families are dependant, it was crucial to revive it at any cost, including by finding a suitor.
According to a statement from the Government, the Industries Minister said some of the concessions extended to new industries will also be offered to the ailing company to ensure its revival.
Even though the paper manufacturing unit had all the necessary requirements to run successful business, including access to raw material, the Government contended that the management of the paper company was responsible for its sickness.
Following lenders crackdown on the paper mill for its payment defaults and later the company declaring itself as a sick industrial concern, the TS Government has initiated efforts to revive the mills by roping in a strategic partner.
The company had been posting losses and its networth had fully eroded. The lenders had also informed about move to attach the property and sell it.
During H1 2016, the company had received possession notice from IDBI Bank under Sarfaesi Act, 2002