Dear Shri. Narendra Modiji,
Please refer to my earlier D.O. letters dated October 24, 2016 and March 6, 2017 seeking your kind intervention to delink Hindustan Newsprint Limited (HNL) in Kerala from Hindustan Paper Corporation and making it an independent enterprise directly under the control of Department of Heavy Industries.
As you are aware Hindustan Newsprint Limited, a subsidiary of Hindustan Paper Corporation Limited has shown excellent performance and had kept a commendable track record in terms of production, productivity and profitability until recent past. During the good years HNL has paid back Rs. 117 crores as dividend. The company has been encountering problems for the last 4 years due to heavy competition from imported newsprint, increased cost of production, out dated plant and machinery and lack of expansion/diversification. The retention of HNL in the Public Sector is crucial for the print media for newsprint supply as well as to give further thrust to ‘Make in India’ campaign.
The unit has all the inherent strengths and would certainly term the corner if it is infused with one time revenue grant or soft loan to close the outstanding borrowed capital. The State Government on its part has been supporting HNL by giving 2670 hectares under captive plantation of various species of pulp wood trees and by fixing the price of pulp wood supplied at a much discounted rate of Rs. 1000/- per ton.
I would, therefore, again request for your kind intervention to step back from privatization/disinvestment of the HNL and delink it from Hindustan Paper Corporation Limited and allow it to function as separate entity after infusing a onetime grant or a soft loan so that the unit can reduce its borrowing cost and continue its operations to turn into a profitable unit once again.
Shri. NARENDRA MODI
Hon’ble Prime Minister of India
152, South Block,
Raisina Hill, New Delhi-110011.