Seshasayee Paper approved a capital expenditure of Rs. 100 crores for the operations of Unit-III

Seshasayee Paper approved a capital expenditure of Rs. 100 crores for the operations of Unit-III

-SPB has taken steps to restore electricity, water supply and-for plant refurbishment.
The Pulp and Paper Times

Seshasayee Paper and Boards Limited (SPB), an Integrated Pulp, Paper and Paper board Mill, and the flagship company belonging to Writing and Printing paper manufacturing in India, has approved a Capital expenditure of Rs.100 crores for Servalakshmi Paper Limited to resume production.

SPB has informed the Stock Exchanges vide the above referred letters that the Hon'ble NCLT, Chennai Bench vide its Order dated May 12, 2023 has approved the application filed by the Liquidator for confirmation of sale of assets of Servalakshmi Paper Limited (Corporate Debtor in liquidation) as a Going Concern, in favour of Seshasayee Paper and Boards Limited (Company I SPB).

The official liquidator of the Corporate Debtor had Issued Sale certificate and completed the physical handing over of the possession of land and factory premises of Servalakshmi Paper Limited (Corporate Debtor in liquidation) (hereinafter designated as Unit-Ill of SPB) on 24.05.2023 in favour of Seshasayee Paper and Boards Limited, for the above mentioned assets.

In the meantime, company has taken steps to restore electricity, water supply and-for plant refurbishment.

In this background, the Board of Directors, in their meeting held on 13th September 24, has approved speedy revival, refurbishment and expeditious recommencement of the operations of Unit-Ill, at the earliest and has accordingly approved a Capital expenditure of Rs.100 crores as Phase- I, towards this purpose.

At the 64th AGM held on June 1, 2024, for Servalakshmi, Mr. N. Gopalaratnam, Chairman of Seshasayee Paper and Boards, mentioned, I think the capacity will be about 75000 tons annually. Our Erode Unit has a capacity of 1,65,000 tonnes p.a. Our Unit-2 in Tirunelveli has a capacity of 90,000 tonnes p.a. With Commissioning of Servalkshmi Unit and 75,000 tonnes getting added, the total capacity of the company will become 3,30,000 tpa.

He further stated during AGM that we have started doing some initial work for receipt of power, water connection, and also get the permission from the pollution control board. These works are currently going on and we'll also now start taking up the refurbishment activities.  The refurbishment should take about nine months. But Servalakshmi mill has been remaining shut for more than seven years.

However, few appeals challenging Hon'ble NCLT's order have been filed in Hon'ble NCLAT; which are pending.
 

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