KOLLAM: The Punalur paper mill which was once the symbol of industrial Kerala, has made a comeback 23 years after its closure. The renovated mill will start producing craft paper as one out of its three machines will start running after the formal inauguration by the Chief Minister Oommen Chandy, in the presence of Industries minister P.K. Kunjalikkuty and Labour minister Shibu Baby John, on September 11.
The mill which is believed to be the oldest paper mill in the country was started in 1886, giving direct employment to over 1,020 employees 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, and operational costs including payment of sales tax, grew.
As many as 18 employees later committed suicide due to the loss of their jobs. 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 a tug of war between various departments of the government.
“We had to face several challenges before reopening the mill. The 277 acres of land that was with the mill have shrunk to 80-90 acres due to encroachment. No bank came forward to help us with loans and we had to find the capital on our own,” said T.K. Sundaresan, chairman.
The renovated mill has a capacity to produce 90 tonnes 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 crore including stake purchasing and clearing of liabilities.
A new substation was installed for the purpose of delivering power to the operation of the plant which has zero pollution discharge. The new plant uses waste paper as raw material to produce craft paper from which corrugated boxes will be made.
