Morung Express New
Dimapur/Mokokchung | July 6
The Tuli Paper Mill, despite various ‘revival’ plan over the years, is apparently on the verge of liquidation.
This was informed during the monthly District Planning and Development Board (DPDB) of Mokokchung held at ADC Planning Hall Mokokchung on July 5. The meeting was held under the chairmanship of Imnatiba, Advisor Industries & Commerce, NIDC and Chairman DPDB Mokokchung.
According to a DIPR report, the meeting discussed the status of the mill and the Additional Deputy Commissioner, Tuli as well as the Industries Department representative informed the house on the present condition of the mill.
The Chairman, who is also in charge of the Industries department, hinted that the paper mill is on the verge of liquidation and all stake holders need to be aware of the situation, the report said.
Liquidation, according to a common business dictionary, is the “the process of bringing a business to an end and distributing its assets to claimants.”
It usually occurs when a company is insolvent or goes bankrupt as “it cannot pay its obligations when they are due” or a “situation in which a company stops operating and sells all its assets in order to pay its debts.”
This is the end of long and winding road of ‘revival’ plan for the Nagaland Paper & Pulp Company (NPPC) Ltd, Tuli (or Tuli Paper Mill) established in 1971 as a joint venture between HPCL and Govt. of Nagaland.
It reportedly suspended operation in October 1992 due to “continued operating losses.”
As per report available, the approval for the mill’s revival was given by the Government of India in June, 2013 with an estimated cost of Rs. 489 crore for the first phase and Rs. 190 crore for the second.
The Nagaland Chief Minister Neiphiu Rio, who was then the in-charge of Industries & Commerce Department, informed the State Assembly on September 18 last year that so far no progress has been made regarding the revival of the mill.
According to a PTI report of the Assembly proceedings, Rio in a letter to Prime Minister Narendra Modi in April ( 2018) stated that after various efforts, a revival package was approved in 2003 amounting to Rs 489 crore, but this package could not materialize till date “despite constant pressure from the Nagaland government.”
"Now the state government has learnt that the ministry of heavy industries has decided to approach the Cabinet for closure of the mill. It would be unfair to leave out NPPCL Tuli, the only heavy industry in Nagaland,” Rio said in the letter. The Mill, as per the report, has 99 employees on its rolls.
The present status contradicts several assurances given over the years. For instance, when The Morung Express inquired about its status of revival in October 2014, the then Public Relation Officer (PRO) of NPPCL stated, “The paper mill will be running at its full capacity by February 2016, give and take 2-3 months.” In February 2015, the then Union Minister for Heavy Industries and Public Enterprise Anand G. Geete assured that the Centre has activated an “action plan to revive” the mill.
Diversion of fund seems to be the failure of this revival plan. “More than half of the fund meant for the mill’s revival was diverted by HPCL, pointed out the Comptroller and Auditor General (CAG) of India in its Report No. 11 of 2018 (Compliance Audit Observations) of the Union Government (Commercial) released earlier in August last year.
HPCL, of which the NPPCL is a subsidiary, diverted Rs 52.37 crore out of the Rs 100 crore released by the Government of India (GoI) as part of a revival package in June 2013 and a CAG adjudged this as “improper conduct” and adversely affected implementation of the mill’s revival plan.
New Chairman, up-gradation of Changtongya to ADC
Meanwhile, among others, the meeting also discussed the up-gradation of SDO (C) Changtongya as well as welcome the new chairman.
The meeting also discussed and agreed in principal for the up-gradation of SDO (C) Changtongya to ADC circle to be forwarded to the government at the earliest, the DIPR report said.
It further informed that the newly appointed Mokokchung DPDB chairman Shariangin Longkumer will assume his chair from August next. Shariangin was elected as member of NLA upon his winning the bye election to 26 Aonglenden Constituency held in April 11.
The outgoing chairman Imnatiba also acknowledged all the members, NGOs and officials led by DC Mokokchung for their supports and co-operation during his tenure as Chairman, DPDB Mokokchung, it added.
Deliberations were held and the house approved the following societies for registration: Ongmesang Tea Farmer Society Anakiyimsen, Tuli and Changtongya and Yaongyimsen Agro Processors Association Society Changtongya Town.
The house agreed to form a committee for Tsungremmong cum Mini Hornbill Festival at Mokokchung which will be held in the first week of August.
Dr Medem, Medical Superintendent (MS) IMDH Mokokchung gave a report on the new Civil Hospital Building Construction while Tongpang Ozukum, Minister PWD, also suggested the house to establish multiple markets in the town and called upon one and all for a plastic free environment, DIPR report added.
