Crisis-Hit Nepa Mill invites integrated pulp and paper manufacturing companies to handle entire production & sales

Crisis-Hit Nepa Mill invites integrated pulp and paper manufacturing companies to handle entire production & sales
- Site visits to the Nepa Mill have been scheduled until July 15
- Company’s Chief General Manager (Technical) recently issued an Expression of Interest (EOI)
- Nepa Limited Turns to Outsourcing Amid Financial Crisis; Looks to Hand Over Raw Material Procurement to Finished Goods Sales
The Pulp and Paper Times
Nepa Limited, Asia’s first newsprint paper mill, has taken a major step towards outsourcing in a bid to recover from its ongoing financial crisis. The company’s Chief General Manager (Technical) recently issued an Expression of Interest (EOI) inviting integrated pulp and paper manufacturing companies to take over the entire value chain—from procurement of raw materials to the sale of finished products—through outsourcing.
According to the notice released by Nepa Limited, the company is seeking interest for full outsourcing of its production facilities. Interested companies have been asked to upload their details on the GeM portal. Site visits to the Nepa Mill have been scheduled until July 15. Reports indicate that one private paper mill has already visited the facility, with more private players expected to follow soon. It is anticipated that in the near future, both production and procurement will be outsourced.
Struggling Through Financial Turmoil
Nepa Limited has been grappling with severe financial distress for some time. Until recently, the mill employed 128 staff members, but 11 employees have retired in the past few weeks. Earlier this year, Member of Parliament Dnyaneshwar Patil had appealed to the Prime Minister for a financial package of ₹150 crore, but the Union Ministry of Heavy Industries has yet to respond. Despite the mill undergoing extensive renovation using government funds, a sustainable turnaround has not materialized. Shortages of working capital have continuously affected the supply of raw materials, chemicals, and coal, leading to prolonged periods of low production. Currently, the mill’s production operations are almost at a standstill.
₹469 Crore Revival Package Failed to Deliver Sustained Growth
The Central Government had previously sanctioned a revival package of ₹469 crore under the RMDP scheme to modernize the facility. On August 23, 2022, the then Union Minister for Heavy Industries, Mahendranath Pandey, inaugurated the revamped plant. Nepa Limited made history in Madhya Pradesh by producing writing and printing paper for the first time. However, instead of steady progress, the mill’s production gradually declined over the last three years. Despite the optimism surrounding its revival, the shortage of raw materials and financial constraints hindered the mill from sustaining its former glory.
Salary Crisis Continues
The salary crisis at Nepa Mill remains unresolved. Employees and officers have not received full salaries for over 13 months. So far, they have reportedly been paid only ₹15,000 on three separate occasions, leaving their household finances in disarray.
Source: Dainik Bhaskar
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