[4] The management team cited increasing raw material costs and unavailability of reliable power as the major reasons that impacted the profitability of the plant.
[5] Efforts were started by the Kalvakuntla Chandrashekar Rao government in Telangana to attract new investors to restart production at the mill and boost the local economy, which was heavily dependent on it.
The takeover comes after the National Company Law Tribunal, Hyderabad had on July 19 approved the Rs 782-crore resolution plan.
JK Paper does not require approval from the Competition Commission of India as the target business is within the prescribed exemption threshold as per the regulations.
Significantly, KT Rama Rao, Telangana IT and Industries Minister, and local MLA Koneru Konappa, played a role in facilitating the takeover of the mill by ensuring that the State extends certain concessions, which will make the mill viable.