KOCHI: After the successful revival of erstwhile Hindustan Newsprint Ltd (HNL), the state government is aiming to implement a Rs 1,000-crore capacity expansion plan, which will help the company grow into a leading player in the Indian paper industry, said Industries Minister P Rajeeve here on Tuesday.
Announcing the opening of Kerala Paper Products Ltd (KPPL) at a press meet at the factory at Velloor, the minister said a Rs 650-crore capacity expansion plan will be implemented for product portfolio expansion. The phase III project will be implemented within a time frame of 27 months.
In phase IV, the existing machinery will be rebuilt with an investment of Rs 350 crore for the production of packaging grades of kraft paper. The four phases of revival and diversification will be completed in 46 months. The expansion project will propel KPPL as one of the leading players in the Indian paper industry with a turnover of about Rs 3,000 crore and a production capacity of 5 lakh tonnes per annum.
By the completion of phase II, the entire existing facility will be made fully functional and paper production will be undertaken with its pulping streams. After successful completion of the revival programme in August, KPPL will be able to produce newsprint and un-surface sized grades of writing and printing paper mainly for notebook and textbook segments.
The revival of HNL, from the verge of liquidation, is a gigantic leap in the industrial scenario of the state. This sets an alternative model of industrial development and gives a big message to the entire country, he said.