After a hiatus of over three decades, the restoration of the Tuli Paper Mill in Mokokchung, Nagaland, has finally begun. Personnel from 3A Capital Services Limited (3ACSL), the new majority stakeholder, have been deployed to the site to initiate the preliminary stages of the project, marking a significant milestone for the region.
The initial phase of the restoration process involves a comprehensive audit, which is expected to be completed by the end of the year. An official from 3ACSL stated that the company’s current focus is on clearing the pending liabilities of the mill’s former employees. This crucial step will pave the way for more extensive restoration and revival efforts in the future.
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The ownership structure of the Tuli Paper Mill has undergone a significant shift, with the State Government of Nagaland’s share reducing from 12% to 3.51%, while 3ACSL, a Mumbai-based private firm, now holds a majority stake of 96.49%. This strategic move is expected to breathe new life into the mill and restore its operations.
Established in 1971 as a joint venture between Hindustan Paper Corporation Limited (HPCL) and the Government of Nagaland, the Tuli Paper Mill was once a beacon of industrial progress. It commenced commercial production in mid-1982 and gained national recognition for its high-quality paper, including the famous ‘Naga Paper’ with a watermark. However, production came to a grinding halt in October 1992, leading to the mill’s referral to the Board for Industrial and Financial Reconstruction (BIFR).
In 2007, BIFR approved a revival package with a reconstruction cost of Rs 552.44 crore, which was sanctioned by the Cabinet Committee on Economic Affairs (CCEA). The Ministry of Heavy Industries and Public Enterprises released Rs 54.60 crore as the first phase of revival. Despite these efforts, a significant portion of the funds was allegedly misappropriated, stalling the rehabilitation process.
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The mill’s fate took another turn in 2019 when Lok Sabha MP Tokheho Yepthomi revealed that HPCL had gone bankrupt and was under liquidation as per an order from the National Company Law Tribunal (NCLT). However, during the G20 business meet hosted by Nagaland in 2023, Chief Minister Neiphiu Rio disclosed Bangladesh’s interest in investing in the state’s paper mill industry, indicating a renewed international interest in the mill’s potential.
The commencement of restoration works under the new ownership of 3ACSL brings a glimmer of hope for the Tuli Paper Mill and the people of Nagaland. As the audit phase concludes and extensive restoration efforts begin, the mill is expected to rise from the ashes, fulfilling the original vision that led to its establishment.
The revival of the Tuli Paper Mill is not just about restoring an industrial landmark; it is about uplifting the socio-economic conditions of the region. The mill’s restoration is expected to create employment opportunities, boost the local economy, and contribute to the overall development of Nagaland.
As the restoration works progress, the people of Nagaland and the stakeholders involved remain optimistic about the mill’s future. With the combined efforts of 3ACSL and the support of the state government, the Tuli Paper Mill is poised to once again become a symbol of industrial pride and economic growth in the region, marking a new chapter in its storied history.
