Cabinet Committee approves financial package of Rs 469.41 crore for revival of Nepa Ltd on CCEA

The Cabinet Committee on Economic Affairs (CCEA) on Wednesday approved a financial package of Rs 469.41 crore for the revival of Nepa Ltd, a public sector newsprint company in Madhya Pradesh.

The "revival and mill development plan" includes infusion of Rs 277 crore as equity to enhance the annual production capacity to one lakh metric tonne, Law Minister Ravi Shankar Prasad told reporters after the Cabinet meeting.

The production capacity currently stands at around 83,000 metric tonnes.

The package also includes a loan of Rs 101.58 crore for payment of salaries and Rs 90.83 crore for voluntary retirement scheme of some 400 employees, he said.

The Cabinet also approved strategic disinvestment of Nepa Ltd at an appropriate time after the completion of revival plan, an official said.

"The completion of the revival plan will help the company command a better presence in the market besides supporting employment in the tribal belt of Madhya Pradesh," the official added.