Karnataka Seeks Private Investors to Revive Mysore Paper Mills
The Karnataka government is exploring private sector options to revive the Mysore Paper Mills (MPM) in Bhadravathi, a decade after its closure. Efforts are underway to attract private bidders with exemptions and relief measures.
Mysore Paper MillsPrivate BiddersKarnataka GovernmentInfrastructure DevelopmentRevive FactoryReal EstateAug 29, 2025
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.
Frequently Asked Questions
Why is the Karnataka government considering private operators for MPM?
The Karnataka government is considering private operators for Mysore Paper Mills (MPM) because reviving the unit as a public sector enterprise is not deemed viable. Private bidders are being attracted with exemptions and relief measures.
What are the conditions prospective operators are seeking for MPM?
Prospective operators are interested in MPM if they are exempted from liabilities and permitted to grow eucalyptus for raw material.
Who is overseeing the bid preparation and evaluation for MPM?
The Infrastructure Development Corporation (Karnataka) has been appointed as the transaction advisor to oversee bid preparation, evaluation, and agreement finalisation for MPM.
What was the employment impact of MPM's closure?
At its peak, MPM directly employed nearly 5,000 people. The closure in 2015 and 2016 led to significant job losses, with 202 employees terminated in 2021 with compensation.
What is the current status of MPM's operations?
Currently, MPM limits its operations to forestry plantations. The company has informed the BSE that its unaudited Q1 FY26 results remain pending due to delays in board approval.
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