Tuli paper mill: Addressing the ‘white elephant’ in the room

Dimapur, July 20(EMN): Going by the ‘doomsday’ reports in some sections of the local media, the only ‘heavy industry’ in Nagaland is ready for burial. The Nagaland Pulp & Paper Company Ltd., (NPPCL), popularly known as Tuli paper mill and quite often dubbed as the ‘white elephant’, has been in the news recently albeit in a discouraging way.

Hopelessness seems to be the overarching sentiment surrounding the paper mill, judging by the reports. Most of the local media had reported that the mill, which has stopped operation since 2015, has no option but to close down, given the fact that the bankrupt Hindustan Paper Corporation Limited (HPCL) has been referred to the National Company Law Tribunal – which, in turn, has ordered the initiation of a corporate insolvency resolution process against the HPCL.

On the other hand, the present People’s Democratic Alliance (PDA) government has assured that the mill would not be shut down; and the government would explore every option possible. The present government has also said that the Niti Aayog, headed by Prime Minister Narendra Modi, assured that the mill will not be closed down. But the again, all seems easier said than done.

Understanding NPPCL
“NPPC, a joint venture between Hindustan Paper Corporation Ltd (HPC) and govt. of Nagaland was established in 1971, primarily to exploit the abundant bamboo resources in the state of Nagaland and for regional development. The main objective of the company is to promote, establish, execute and run industries, projects or enterprises for manufacturing, selling and/or export of pulp, paper, newsprint and various products from pulp and paper,” clearly states the official website of the company.

Subsequently, it was commissioned in 1982 – and per available first-hand information – the mill ran quite well despite certain hurdles ‘here and there’.

Former chairman of the NPPCL and retired bureaucrat, TN Mannen, during an interview with Eastern Mirror, said that the problems during those days were enormous. There was the problem from ‘anti-social elements’; the problem from the ‘undergrounds’ – “those were the days when the underground movement were at it heights” – the lack of proper work-skills, and the attitude of the people of taking the mill as a regular government service instead of a profit-making venture. But most of all, he admitted, the biggest problem was the power supply. Or rather the inability to provide uninterrupted power in order to run the industry.

“The boiler (for generating electricity) which we bought from Poona, now known as Pune, was defective and once the paper making process starts, if the power goes off, then the whole input goes to waste…” shared Mannen of the system then.

“Otherwise, the paper quality from the Tuli paper mill was regarded as the best in the county, but we could not, at any point of time, cross 25% of the total production capacity,” rued the former bureaucrat.

At best, one can only imagine the political situation during those years, the mentality of the people, who were otherwise simple farmers, towards working in a big industry, and also the infrastructural problem that might have compounded the problem.

The man behind it all
The former chief minister of Nagaland, Dr. SC Jamir, considered one of the architects behind the establishment of the Nagaland Pulp & Paper Company Ltd (NPPCL), during a telephonic conversation, gave more insight into the initial days of the establishment of the mill.

Jamir said that ‘at that point of time’ the government considered basing on the ‘availability of raw materials’ and ‘according to survey and expert opinion’ decided to establish a paper mill at Tuli in Mokokchung district. Towards this end, the government brought a large area of land under bamboo plantation to support the paper mill, which indirectly made the neighbouring villagers as beneficiaries and also generated employment opportunities for the villagers.

Job opportunities were also created for the local people. But of the four boilers meant for generating power, one did not work properly and it hindered the production process, he shared. But the operation went in full swing nevertheless, according to him.

However, gradually and slowly, problem cropped up. They were in nature technical as well as lack in skilled work force, according to Jamir. But the mantra back then, he said, was that the government will never allow the mill to be shut down even as the problems – in his words – were ‘overwhelming.’

The near-dead white elephant
It is said that Tuli paper mill ‘was a peace package in the aftermath of the signing of the first ceasefire on September 6, 1964 with an equity share of 7:1 between the government of India and the state government of Nagaland’.

Hindustan Paper Corporation Ltd (HPCL) is now bankrupt and has been referred to NCLT (National Company Law Tribunal). The only glimmer of hope is the reported assurance from the Niti Aayog and the determination of the state government ‘to pursue all options’ to revamp and restore the mill at all costs.

Mannen disclosed that at one point of time the government of India, during an informal interaction, had offered the government of Nagaland to take over the mill for “a token amount of Rs 1”. “However, I said that the government of Nagaland would not take it and the government of Nagaland is not in a position of take it,” shared the former bureaucrat.

The HPCL factor
Despite all the discrepancies in the life of the Tuli paper mill, the Hindustan Paper Mill Ltd (HPCL), by all means looks to be on the wrong side – given the fact that the government of India had sanctioned a sum of Rs of Rs. 489 cr. for the first phase and Rs. 190 cr. for the second of the revival of the mill.

In February 2015, the Union Minister for Heavy Industries and Public Enterprise Anand G Geete assured that the Centre has activated an “action plan to revive” the mill. For all the information in the public domain, the HPCL appears to have not utilised the funds properly much to the consternation of the state government.

The sound of silence
What is more surprising is the deafening silence of the Naga public, despite the news dominating headlines in the local newspapers.

“Nagas are in a dilemma. They are thoroughly confused of everything. They can’t distinguish whether it is dangerous or not. This is the condition now,” said Jamir when asked about the silence of the Naga public on the issue. He however strongly asserted that the NPPCL “should not be allowed to die.”

He said that if the state government approach the government of India, then the latter “will not be shy for the recovery of this industry.”

But of course, the question is: who will lead? The state government is actively pursuing its case. The Niti Aayog has offered hope. The clock is ticking. And among the citizens: we can almost hear the sound of silence.