Letter to the Prime Minister

Dear Narendra Modiji,

Hindustan Newsprint Limited which is a subsidiary of Hindustan Paper Corporation Ltd had been performing excellently and maintained the commendable track record in terms of production, productivity and profitability until recent past. However, no major expansions were carried out during its entire period of existence and no other financial assistance from its holding company or from the Central Government has been sought by HNL during these years. HNL has paid back about Rs. 117 cores as dividend. The company has been encountering problems due to several reasons. For the last 3-4 years due to competition from imported newsprint, increased cost of production, old plant and machines and no expansion/diversification.

May I request you to initiate measures to delink HNL from its holding company and make it an independent enterprise directly under the control of Department of Heavy Industries. This will provide more operating freedom for the company for diversification. Kindly allot INR 100 crores as a revenue grant or soft loan from Government of India to close the outstanding borrowed capital. An amount of INR 450 crores is required for the modernisation/ upgradation of the existing plant. All employees of HNL irrespective of their party affinity is appealing to the Government of India to intervene and avert privatization/ disinvestment of this prestigious central public sector undertaking in Kerala.

With regards,

Yours sincerely,

Pinarayi Vijayan

Shri. Narendra Modi
Honble Prime Minister of India
152, South Block, Raisina Hill,
New Delhi 110 011.