Paper mill effluents are of large scale environmental concern because they diminish the quality of water bodies into which they are released. Their disposal into the environment creates adverse effects by altering the normal physiochemical properties of soil and water. Though many conventional physicochemical methods are currently being practiced, biotechnological methods are becoming attractive alternatives, as they are economical and eco-friendly. During present investigation the physic-chemical properties of paper mill effluent sample was analyzed and dizotrophic cyanobacterial strains were isolated from such effluent flooded fields, simultaneously the growth behavior and heterocyst frequency of Anabaena doliolum treated with graded concentrations of paper mill effluent was assessed and observed result of growth experiments was found very significant. Findings has been revealed that graded effluents at lower concentration promotes the Cyanobacterial population especially nitrogen fixers and finally enhance the agriculture production by increasing the soil fertility. The present investigation has also provided a cue of further investigation, which would confer that such dizotrophic Cyanobacteria can serve as the potential bio-remedial organism for industrial pollution.