The Karnataka government is exploring the revival of the Mysore Paper Mills (MPM) in Bhadravathi by leasing it to private players.

Large and Medium Industries Minister M B Patil, replying to a question from Bhadravathi MLA B K Sangameshwara, said that restarting the factory under government management was not feasible. Instead, private participation is being pursued, with exemptions and relief measures under consideration to attract bidders. Prospective operators have reportedly shown interest, provided they receive exemptions for growing eucalyptus and are free from past liabilities.

To facilitate the process, MPM has appointed Infrastructure Development Corporation (Karnataka) (iDeCK), a Bengaluru-based consultancy, as its transaction advisor. iDeCK will manage bid preparation, evaluation, and finalisation of agreements. The government aims to complete the leasing process in accordance with rules, enabling the mill to restart operations. Once finalised, the move could potentially restore industrial activity and employment in the Bhadravathi region.