Cabinet approves proposal for paper mill in UP

New Delhi, Nov 26 (UNI) The Union Cabinet today gave its approval to Hindustan Paper Corporation Ltd(HPC) Kolkata, to form a subsidiary to set up a new paper Mill at Jagdishpur, District Sultanpur in Uttar Pradesh, at an estimated cost of Rs 2742 crore (constant cost basis) and Rs 3241 crore as completion cost.

Parliamentary Affairs Minister Priya Ranjan Dasmunsi told newspersons here that the subsidary company will have 51 per cent equity holding by HPC and shall raise the balance 49 per cent equity from capital market through an IPO.

The government will grant a loan of Rs 255 crore to HPC enabling the company to subscribe by way of promoters 51 per cent contribution equity.

The approval is also for the creation of a full time Managing Director's post for the new subsidiary company.

Mr Dasmunsi said the Cabinet has given consent for setting up of a SPV in the form of a cooperative Society under Multi State Cooperative Societies Act 1984 for carrying out farm forestry activities.

The new company will venture into production value added segment of paper which will enable the company to cover the entire spectrum of publication--printing and writing paper.

UNI