Nagaland’s NPPC faces identity crisis as land is considered for industrial ventures

The fate of the Nagaland Pulp & Paper Company (NPPC) Limited in Tuli, Mokokchung district, remains uncertain as around 700 acres of its land are being considered for alternative industrial ventures. The NPPC, envisioned as the state’s first medium industry to produce writing, printing, and Kraft paper, halted operations in 1992 due to technical and financial challenges. Despite a revival package of ₹552.44 crore approved in 2006, efforts to restart the mill failed, leading to its liquidation in 2019.

Mumbai-based 3A Capital Services Limited (3ACSL) acquired a majority 96.49% stake in November 2023, purchasing shares worth ₹1.13 crore. However, reports suggest that the company is shifting focus from reviving paper production to establishing a coal-based thermal plant, ethanol production facilities, and potentially oil exploration projects. Landowners have expressed concerns about the lack of transparency in these plans. Villagers who donated land for the NPPC under a 99-year lease agreement with the government feel the shift violates the original purpose of the project.

Reviving paper production is deemed costly, requiring over ₹1,500 crore for machinery upgrades and ₹150 crore in worker dues. The proposed ventures signal a strategic pivot, though they have sparked resentment among stakeholders advocating for greater clarity.