Government to provide Rs.75 crore annual grant to Cachar Paper Mill
The government Friday approved an annual grant of Rs.75 crore to Cachar Paper Mill (CPM) in Assam to meet the transportational cost of the unit.
According to the Cabinet Committee on Economic Affairs (CCEA), which met here, cost of transportation to and from CPM is much higher compared to other competing paper mills due to poor rail and road network.
"This denies a level playing field to HPC (Hindustan Paper Corporation Limited). Providing grant to the tune of 90 percent of the cost of transportation would enable CPM to become viable and competitive," CCEA said in a statement.
The statement added that the grant will be provided to CPM till gauge conversion of the Lumding-Silchar railway line is completed.
(Posted on 28-02-2014)
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