Punalur paper mill revived after 28 years
The 277 acres of land that was with the mill has now shrunk to 80-90 acres due to encroachment
By : DC Correspondent
Update: 2015-09-12 06:50 GMT
KOLLAM: The Punalur paper mill started functioning after nearly a quarter of a century when the renovated mill was inaugurated by Chief Minister Oommen Chandy here on Friday.
The mill started producing craft paper as one out of its three machines got functional. Labour Minister Shibu Baby John and Adoor Prakash MLA were present at the function.
The mill which claims to be the oldest paper mill in the country was started in 1888 giving direct employment to over 1020 staff until it was shut in August 1987 due to huge liabilities.
The mill was owned and operated by a management under L.N. Dalmia before its liabilities including dues to the employees, creditors, operational costs and payment of sales tax led to its closure. As many as 18 employees later committed suicide due to job-loss.
The stakes of the mill was taken over by a new director board under the Chairmanship of T.K. Sundaresan in 2010.
The functioning of the mill was again delayed due to the tug of war between various Government departments.
The 277 acres of land that was with the mill has now shrunk to 80-90 acres due to encroachment.
The industry is also in crisis as no bank has come forward to help the owners with loans and the capital has been raised on their own without financial support from outside.
The renovated mill has a capacity to produce 90 tons of craft paper per day with an employee strength of 120 in three shifts.
The other two machines will also be operational soon to give employment to over 400. The new management has invested nearly Rs 100 cr including a stake purchasing and clearing of liabilities.