The rise, fall, and potential resurgence
The ruins of the Tuli Paper Mill, once hailed as the pride of Nagaland, tell a story of dreams shattered and promises unfulfilled. The Nagaland Pulp and Paper Corporation Limited, established in 1971 as a joint venture between Hindustan Paper Corporation Limited (HPCL) and the Government of Nagaland, aimed to uplift the socio-economic conditions of the state.
The mill commenced commercial production in mid-1982, crafting high-quality paper, including the famed ‘Naga Paper’ with a watermark, which gained national recognition. However, production abruptly ceased in October 1992, citing reasons known only to the management, leading to the referral of the mill to the Board for Industrial and Financial Reconstruction (BIFR).
After overcoming numerous obstacles, BIFR approved a revival package on May 29, 2007, involving a reconstruction cost of Rs 552.44 crore. The Cabinet Committee on Economic Affairs (CCEA) sanctioned the amount on June 26, 2007, initiating the revival process. The Ministry of Heavy Industries and Public Enterprises released Rs 54.60 crore as the first phase of revival.
Yet, an RTI report revealed that out of the allocated amount, Rs 36.76 crore was expended by HPCL/NPPCL between 10/7/2007 and 30/4/2009. A revised Detailed Project Report (DPR) submitted in March 2009 for Rs 679.00 crore gained approval on June 4, 2013. The Ministry released Rs 100.00 crore in September 2013, of which Rs 60.00 crore was allegedly misappropriated, leading to a halt in the rehabilitation.
This was narrated by the Joint Action Committee (Workers Union and Pensioners Union), Nagaland Pulp and Paper Corporation Limited.
In 2019, Lok Sabha MP Tokheho Yepthomi disclosed that HPCL had gone bankrupt and was under the National Company Law Tribunal (NCLT) for liquidation. Fast forward to 2023, as Nagaland hosted the G20 business meet, Chief Minister Neiphiu Rio revealed Bangladesh’s interest in investing in the state’s paper mill industry.
Responding to an unstarred question, Lok Sabha MP Tokheho Yepthomi had in 2019 responded that the holding company, the HPCL, is now bankrupt and was taken over by the National Company Law Tribunal (NCLT) and is under liquidation process as per NCLT order, 2/5/2019.
Rio stated that the Bangladesh delegation expressed interest in establishing a paper mill in Nagaland due to its vast potential. However, uncertainties linger regarding whether the investment will revive the defunct Tuli Paper Mill or introduce a new venture.
Simultaneously, Rio announced the liquidation of the existing paper mill at Tuli, inactive since 1992, to pave the way for fresh investments. The Chief Minister attributed the failure of NPPCL to defective machinery and proposed a fresh deal, privatization, and a renewed approach.
“We have to make a fresh deal, look for privatization and do everything afresh. That company is already dead and they are out of this mess. But what they left behind has to be cleared, else the next investment won’t be able to come in,” he had said.
In an interview in 2018, TN Mannen, the then Chairman of NPPCL and current Advisor of Law and Justice, identified challenges such as anti-social elements, issues with the underground, lack of skills, and the perception of the mill as a government service rather than a profit-driven enterprise.
Mannen acknowledged the critical problem of inconsistent power supply, stating how the defective boiler from Pune rendered the paper-making process vulnerable to power interruptions, leading to significant losses.
As Nagaland embarks on a new chapter with potential Bangladeshi investment, the fate of the Tuli Paper Mill hangs in the balance. Will this be a phoenix rising from the ashes or a testament to the challenges that continue to plague the state’s industrial aspirations? Only time will tell.