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.
“Virgin wood fibre will be sourced from the 2,600-hectare plantations assigned for HNL’s use by the Government. The terms and conditions for obtaining forest resources are expected to remain the same,” he added.
A land utilisation plan for the 700-acre property too has been prepared. It envisages an eclectic mix of businesses with Kerala Rubber Limited, and industrial projects under Kinfra.
As the company looks to start with a clean slate, recruitments will begin on a fresh note, though the Government has, in principle, accorded priority to the outgoing workforce. The prospect, however, has failed to enthuse the 260 regular and 150 contract employees of the previous company, who have not received their monthly salaries from December 2017, except as a percentage of their dues as part of the resolution plan.
“The Government disbursed 35% of our salary dues during the takeover but those who retired, or are due to retire, stand to lose much. Most employees have incurred huge debts. Their Provident Fund corpus and gratuity are severely impacted. We want the State Government to pay our dues,” said the leader of a workers’ union at the factory.
Responding to the demand, the Minister said the Left Government had the political commitment to help the workers even though it was not legally bound to do so.
“It is a fresh start but we will do whatever possible to address their grievances,” said Mr. Rajeeve.
