The Parliamentary Sectoral Oversight Committee on National Economic and Physical Plans has assured to look into the possibility of running the Valaichchenai Paper Mill as a public-private joint venture, instead of the proposal to close it down.
Chairman of the Committee, Mahindananda Aluthgamage stated he will convey the need to maintain the Valaichchenai Paper Mill as a public-private joint venture without allowing a situation of closure, adding that it will be informed to the concerned ministers and the President.
According to a Parliament statement, he made the remarks when the National Paper Company Limited annual reports for the years 2013, 2014 and 2015 were taken into consideration by the Parliamentary Committee recently (Feb 20).
Secretary to the Ministry of Industry, Thilaka Jayasundara stated that since the machines of the Valaichchenai factory were imported in 1956 and thus 1.2 million dollars are required for repairs. However, since no financial allocation was received from the treasury, a cabinet paper was submitted to run this as a public-private joint venture but was not approved as the land was allocated for tourism.
It was also disclosed that if USD 1.2 million is spent and repairs are made to the machines in the factory, a profit of 22 million rupees per month can be made by producing 5 tons per day. It was also discussed that this entire land, which is spread over an area of 340 acres, could be considered a tourist zone instead of only a part of it. The Committee Chair stated that if the Valaichchenai Paper Mill is to be closed down, instead of selling it, it is important to run it as a public-private joint venture, and thus, the recommendation of the Committee shall be forwarded to the Ministry of Finance and industry and …read more
Source:: News Wire