The Hindu Business Line : Sai Rayalaseema Paper to restart operations

SAI Rayalaseema Paper Mills Ltd (SRPML) is set to restart operations after a gap of seven years with the Appellate Authority for Industrial and Financial Reconstruction (AAIFR) sanctioning a fresh rehabilitation scheme in favour of the new management — B.V. Sathya Sai Prasad & Associates.

In a press release issued here, the company said the mill would reopen on the eve of Vijayadashami. The management has reached an agreement with the workers' unions on demands pertaining to the closure period.

The mill, situated on 640 acres of land on the banks of river Thungabhadra near Kurnool town, has a capacity to produce over one lakh tonnes per annum of all varieties of paper.

Wage agreement: The new management has agreed to pay about six months of wages amounting to around Rs 2 crore to the workers in full and final settlement of their claims and demands for the closure period and take back the workers in phases.

The management will pay Rs 50 lakh to the workers on the reopening day.

In order to find an early and effective solution for revival of the company, the new promoters had earlier made a proposal to all the consortium banks and financial institutions to clear the entire outstanding dues so that the company could restart operations by raising fresh loans.

All the financial institutions, lead by the Industrial Development Bank of India, and the commercial banks lead by the State Bank of India, agreed to the proposal.

The cost of the scheme is Rs 110 crore, under which the management has to pay Rs 25 crore to the banks, financial institutions and other creditors to clear the total dues and make the company debt-free.

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