Sirpur Paper Mills Limited at Kagaznagar town is one of the oldest mills in the country, is on the verge of closure. The production has stopped since November, 2014.
The SPM was established in 1936 by the Nizam of Hyderabad and production of paper started in 1942. In the 1950s, it was purchased by the C.K. Birla group and later transferred to the Poddars.
Conditions at Sirpur Mills are on its worst phase. The livelihood of 1,600 contract employees is uncertain. Even the permanent staff is not getting their salaries on time. Off course workers are not sure about resumption of production at Sirpur Paper Mills Limited as farmers have stopped supplying raw material with the dues piling up.
The mill was established in 1938 and production commenced in 1942 with an aim to develop the backward community in Adilabad region. But the rise in productivity did not last long and eventually the mill suffered heavy losses.
Trade unions allege that the main reason for the fall from profit-making venture to loss-making unit is the apathy on the part of the management. Alleged misuse of funds started.
Despite Chief Minister K Chandrashekar Rao holding out an olive branch to the management in line with the State’s new industrial policy and Home Minister Naini Narasimha Reddy being elected as president of the recognized union of the mill, the management remains adamant in its attitude.
The government has also promised for free power supply for six months and a considerable subsidy on trees. But the management has failed to grab the opportunity to revive production.