Nagaland government to set up panel on Tuli paper mill

KOHIMA — Chief Minister Neiphiu Rio on Thursday assured that Nagaland government will set up a committee to examine issues surrounding the Tuli Paper Mill, currently under the ownership of Mumbai-based MS 3A Capital Services Limited. The committee will review how the company is handling the mill and set a timeframe for action.

Replying to a starred question from MLA Nuklutoshi in the Assembly, Rio said Nagaland lacks expertise and technical resources to run large industries, recalling that hopes placed on Hindustan Paper Corporation Limited (HPCL) in the past ended in failure.

He said that HPCL not only failed to resolve the problems it created but also auctioned the mill on November 7, 2023, handing it over to MS 3A Capital Services Ltd., following orders of the Bombay High Court.

Nearly two years later, Rio said, no agreement has been signed with the new owners, leaving their intentions unclear. He said that the government will examine the matter through the proposed committee and consider legal action against HPCL if necessary.

More from 7th NLA sessions: Finance Commission, Flood Plain Zoning bills introduced in Nagaland Assembly

Coal royalty crosses INR 24 cr. in Nagaland; NLA panel seeks curb on illegal mining

“The suffering of the people is highly regretted and it should be resolved early,” he told the House.

Nuklutoshi raised concerns over rumours that MS 3A Capital Services had been permitted to extract petroleum, natural gas and coal. Rural Development Minister Metsubo Jamir clarified that no such agreement exists, although the company has submitted a proposal for ethanol production.

The department of Industries is currently examining the proposal in consultation with other departments.

“This (extraction of natural resources) is a departmental matter involving Geology and Mining and Land Resources. They will put up the matter to the government and we will examine the matter,” he added.

The MLA also drew attention to ongoing salary disputes between the paper mill workers’ union and the company, stating that nine meetings had been held since 2024-25 without state government representation. He said that the company has offered to pay 57% of salaries, while workers are demanding 85%, and urged Rio, who also holds the Industries and Commerce portfolio, to intervene.

Government open to new proposal

In a written reply, Rio confirmed that 3A Capital Services Ltd. acquired a 96.49% stake in Nagaland Pulp and Paper Company Ltd (NPPCL) on November 7, 2023, while the state government holds 3.5%. He said that the company’s initial proposal was to revive the defunct paper mill, but it has since expressed interest in ethanol production, citing better economic prospects.

He added that the government is open to new proposals provided they benefit the state and local population, comply with industrial and environmental laws, and meet fair business standards. A draft agreement between the government and the company is currently under consideration, he said.