KOLLAM: The Punalur Paper Mills, which has been remaining closed for more than a quarter century, is all set to restart its operations by the end of this year with a new set of investors at the helm. The iconic company, which was set up in 1886, will be the oldest paper mill in the country when it restarts its operations. The company had recently ended its 23-year court receivership and revamped the first of the three paper producing units.
With the completion of works in the first phase, the company is expected to produce 90 tonnes of craft paper per day. Once all the three units starts functioning, the management hopes to produce around 350 tonnes of paper per day. The company is pinning its hope on the demand of paper in the country and abroad. “The per capita use of paper is increasing. We are also eyeing the export market. I am sure we will be able to ride on the goodwill of the company,” said Nelson Sebastian, one of the directors of the company.
The paper mill had earlier provided direct employment to more than 1,000 people and another 4,000 people indirectly. The name of the mill was even mentioned in a chapter on paper business in the lower primary school textbooks of the state syllabus. Earlier, the pulp for making paper was taken from reed bamboo shoots. However, in a bid to make paper manufacturing more environment-friendly, the new plants are now recycling papers for making craft papers. Around 130 people have been employed for operating the first unit and 600 more will be added in the next two phases.
The company had witnessed a lot of uneventful incidents which resulted in its closure in 1985. The revival of company referred to BIFR is considered by the industry experts as a watershed moment for the state which is not among the list of investor-friendly destinations.
The previous investor Laxmi Nivas Dalmia had his fingers burned with the adverse government policies, which landed the company in crisis. Losses mounted due to non-availability of raw materials (reed bamboo and dry eucalyptus) and it was alleged that the government orders diverted its rightful share. Dalmia was also jailed over sales tax dues.
The new investors made deal with the Dalmias, availed the single window clearance of the government, engaged with the creditors and settled the dues of 1,000-odd workers and the families of 18 among them who committed suicide. Now, the power crisis has also been resolved with the management setting up its own 110kv sub station with the help of KSEB. The mill is waiting for the Assembly session to get over for its formal inauguration.