Karnataka Seeks Private Investors to Revive Mysore Paper Mills
The Karnataka government is considering leasing the Mysore Paper Mills (MPM) in Bhadravathi to private operators to restart operations, a decade after the factory ceased production. Large and Medium Industries Minister M B Patil informed the Karnataka Legislative Assembly that reviving the unit as a public sector enterprise was not viable. The focus is now on attracting private bidders with various exemptions and relief measures.
Prospective operators have shown interest, provided they are exempted from liabilities and allowed to grow eucalyptus for raw material. The state has appointed the Infrastructure Development Corporation (Karnataka) as the transaction advisor to oversee bid preparation, evaluation, and agreement finalisation.
Patil noted that previous tenders since 2017 failed to attract bids. However, a renewed push is underway, with discussions on waiving dues and resolving pending loans. MPM, once a flagship industry in Shivamogga district, stopped paper production in 2015 and sugar operations in 2016. The state formally closed the unit in 2021, terminating 202 employees with compensation. At its peak, the mill directly employed nearly 5,000 people.
Meanwhile, MPM has informed the BSE that its unaudited Q1 FY26 results remain pending due to delays in board approval. The company currently limits its operations to forestry plantations. The revival of MPM is seen as a significant step in revitalizing the local economy and providing employment opportunities in the region.
The Infrastructure Development Corporation (Karnataka) is a state-owned entity that plays a crucial role in promoting and facilitating infrastructure development in the state. The corporation has been involved in various projects, including industrial parks, roadways, and other critical infrastructure, contributing to the overall economic growth of Karnataka.
