Erstwhile Velloor newsprint factory HNL to be reopened on New Year in new avatar

Kochi: Kerala Paper Products Limited (KPPL), the erstwhile Velloor-based Hindustan Newsprint Limited (HNL) which was taken over by the State Government recently, will be reopened on January 1, 2022.

 

In the beginning only renovation work will be carried out. Production will commenced only after completing the repair and renewal works.

 

Kerala Industries Minister P Rajeev and senior officials of the State Industry Department would visit the factory premises at Veloor on December 21 to take stock of the situation ahead of the reopening.

 

As per the plan, the repair work will be finished in two months and the inauguration of the plant will be held within six months.

 

The repair work will be held in two stages. At first machinery repair will be undertaken and secondly, the reconditioning of the plant. The plant will start functioning once these works are finished.

 

Newsprint will be made using imported paper pulp and recycled papers. Steps are afoot to collect raw material for kick-starting the production.

 

During the first stage, newsprint will be manufactured. It will be followed by paper production.

 

The newsprint produced in the new company will be first supplied to the existing customers such as various departments coming under the State Government and the Kerala Books and Publishing Society based in Kakkanad.

 

HNL WORKERS TO BE RETAINED

 

The employees who worked in the old HNL company will be reappointed in the new company stage by stage from January 1, 2022.

 

Industry Minister P Rajeev and trade union leaders held discussions on the issue. According to Rajeev, the HNL employee will be reappointed on contract basis in the beginning.

 

However, the trade unions demand that all employees should be reappointed on a permanent basis. Another round of discussion between the minister and the trade unions will be held soon to break the impasse over the issue.

 

The HNL had 260 permanent workers and 150 contract employees.

 

Rs 146 CR SPENT ON HNL TAKEOVER

 

The HNL at Velloor was taken over by the State Government from the Central Government by paying Rs 146 crore. The Central Government had kept it for sale along with other Central Public Sector Units (CPSUs).

 

After the takeover by the Kerala Government, the company stopped production from January 2019. After three years, the State Government has now come up with a revival plan for the acquired company.