Nepanagar (Madhya Pradesh): Newsprint production at Nepa Limited has stopped due to a coal shortage, even though both paper machines are fully operational and can produce 100,000 tonnes of newsprint annually. To resume regular operations, the mill needs a steady coal supply, working capital and financial relief.
The mill's latest balance sheet shows an accumulated loss of about Rs 1,055 crore. Management says a waiver of the Rs 247 crore government loan and Rs 427 crore in accrued interest is necessary, as the mill pays about Rs 57 crore in annual interest while being unable to earn even Rs 25 crore profit a year. About Rs 10 crore is also owed by the Municipal Council.
Over six months, workers repaired both machines using internal resources. With help from local youth, ITI trainees, 'Seekho-Kamao' scheme participants and contractual staff, a three-shift workforce was formed.
The mill then ran continuously for one month, covering salaries, electricity bills, operational expenses and supplier payments. Production halted when coal ran out.
Officials met Ministry of Heavy Industries representatives in New Delhi, contacted senior officials at South Eastern Coalfields and Nagpur-based Western Coalfields and sought support from the Ministry of Coal.
Production remained suspended from 2012 to 2022, yet the mill met obligations such as salaries, electricity, water, sanitation, education and healthcare by borrowing at 16% interest. This burden makes commercial bank loans difficult to obtain.
The mill supports the economy of Nepanagar and about 80 villages, including transporters, suppliers and shopkeepers.
It also supplies drinking water to the town, and dues have been formally raised with the administration, commissioner and district collector.
India imports roughly 60% of its newsprint; full production at Nepa could cut imports and save foreign exchange. The mill also recycles waste paper.
OFFICIAL RESPONSE
NEPA Limited public relations officer Sandeep Thakre said production is suspended due to coal shortage.
Management is in talks with the Ministry of Heavy Industries, the Union Ministry of Coal, SECL Bilaspur and WCL Nagpur for supplies.
