HNL was facing liquidation when the Kerala government took it up with a National Company Law Tribunal, which approved the ₹146 crore bid.
HNL was facing liquidation when the Kerala government took it up with a National Company Law Tribunal, which approved the ₹146 crore bid.
Plagued by inefficient administration, Hindustan Newsprints Limited – a centrally owned public sector entity that had long dominated Kerala’s industrial landscape – ceased operations nearly four years ago. But this iconic piece of industrial infrastructure on the banks of the Muvattupuzha river is now the centerpiece of an alternative model of development proposed by the Left Democratic Front (LDF) government of the state.
On Tuesday, as the state celebrated its 66th birth anniversary, the then industrial giant resumed commercial production of paper. In a function presided over by Industries Minister P. Rajeev, Finance Minister KN Balagopal flagged off the first load of paper prepared by the unit.
Industries Minister P. Rajeev said, “Kerala is writing a new history by taking over a defunct Central PSU through auction and resuming its industrial scale operations.” According to him, the company expects an increase in profits from March onwards and will also start recruiting employees on a permanent basis.
“The company intends to achieve an annual turnover of ₹3000 crores with a production target of five lakh metric tonnes. In the process, it will also create over 3000 jobs, which is equal to the total number of jobs that the public sector can create in the state in a period of four to five years,” he said.
Company sources said the commercial operations had begun with the production of high quality 45 GSM newsprint. “As the plants gain stability in production, the unit will also focus on producing 42 gsm newsprint and 52-70 gsm writing and printing paper,” he said.
HNL was facing liquidation when the Kerala government took it up with a National Company Law Tribunal, which approved the ₹146 crore bid. Funds raised through the Kerala Infrastructure Investment Fund Board (KIIFB) were disbursed through the Committee of Creditors – a consortium of banks.
Later, the state chalked out the revival of the unit in four phases, which resumed operations as Kerala Paper Products Limited (KPPL) with effect from January, 2022.
The outlay for the first two-phase revival plan was ₹154.39 crore and the third phase envisaged capacity expansion and product portfolio diversification, with an investment of ₹650 crore over 27 months.
The fourth phase of operations will focus on restructuring the existing machinery for production of packaging grade of kraft paper. It requires an investment of ₹350 crore and a time period of 17 months to implement. The development activities in Phase III and IV are aimed at increasing productivity and then moving towards diversification.
It has also been decided to start commercial cultivation of bamboo to overcome the shortage of raw material.
Along with reviving the paper production unit, a land use plan for 700 acres of property has also been initiated which envisages opening of an industrial park for natural rubber based industries under Kerala Rubber Limited.