New Delhi: The Cabinet Committee on Economic Affairs chaired by the Prime Minister, Narendra Modi announced a financial package of Rs. 469.41 crore for the Revival and Mill Development Plan (RMDP) of Nepa Limited, a public sector newsprint company located in Nepanagar, Madhya Pradesh on 3rd October 2018.
This package includes an infusion of Rs. 277 crores as equity in the company for the completion of RMDP which shall enhance production capacity to 1,00,000 MT per annum from the present capacity of 83,000 MT per annum, diversify production, improve quality of products and also help resume production at Nepa Ltd. The RMDP is expected to be completed within a year.
A loan of Rs. 101.58 crores have also been approved for the payment of salary and wages.
This will reduce the hardship being faced by the Nepa Ltd. employees. A sum of Rs. 90.83 crores were approved for the voluntary retirement scheme of 400 employees.
The strategic disinvestment of Nepa Ltd. on completion of the RMDP at an appropriate time was also approved.
The completion of the RMDP will help Nepa Ltd. to boost production, diversify its product portfolio and also support employment in the tribal belt of Madhya Pradesh.
Nepa Ltd. is a pioneer newsprint company located in Burhanpur district of Madhya Pradesh. Nepal Ltd. was set up in 1947 and was the only newsprint manufacturing unit in India up to 1981.