Rs 500 cr revival package sanctioned for Nagaland Pulp & Paper

KOLKATA: Nagaland Pulp and Paper Co Ltd, a subsidiary of state-owned Hindustan Paper Corporation (HPC), was taken out of BIFR control on Tuesday, following sanction of a revival package.

Announcing this here, Minister for Heavy Industries Santosh Mohan Dev said that a Rs 550-crore revival package had been sanctioned for NPPC, which would be utilised by HPC to turn the company around.

NPCC was referred to BIFR in 1998 and winding up orders were passed in 2002.

The minister said that HPC had now been entrusted to look after NPCC.

Speaking at the 38th foundation day of HPC last night, Dev said that the company had earned a pre-tax profit of Rs 170 crore on a turnover of Rs 1089 crore.

Secretary to the Department of Heavy Industries R C Panda said the performance of HPC was not satisfactory when compared to private companies.

While profitability margins of private firms were more than 20 per cent, it was only 10 per cent for HPC, he rued.

He said that HPC should strive to improve turnover and profitability through cost cutting and savings. HPC might also look out for mergers and acquisitions.

Panda said that HPC should earn a revenue of Rs 3000 crore by the end of 11th Five Year Plan.