Kerala Government lends a hand to a Central PSU
The Hindu
HNL to start production in new avatar
With its empty roads and deserted buildings, the 700-acre property in Velloor on the banks of the Muvattupuzha river now presents a jarring contrast to its glorious past. The industrial township, built around Hindustan Newsprint Ltd. (HNL), a Centrally owned Public Sector Undertaking (PSU), once embodied the region’s industrial stature and working class pride. But inept administration and the consequent revenue losses brought down the colossus and its sprawling township. HNL ceased operations on January 1, 2019.
When the Union Government began devising ways to dispose of the bleeding entity, which was facing insolvency, the State Government threw in a lifeline. Taking it over with a ₹146 crore bid approved by the National Company Law Tribunal, the State authorities initiated a revival of the unit, which will resume operations as Kerala Paper Products Limited (KPPL) from January 2022.
According to P. Rajeeve, Kerala Minister for Industries, the new company will become operational in four phases over 46 months. “The State Government will invest around ₹125 crore in the first two stages. The next two phases will require a capital investment of ₹1,600 crore, which will be raised from banks. The total turnover at the end of the fourth phase will be around ₹2,600 crore,” he said.