'Kerala Paper Products' is a symbol of the LDF government's commitment to building a new Kerala

Saving the old Vellore newsprint factory from closure and reviving it under the name 'Kerala Paper Products' is a symbol of the LDF government's commitment to building a new Kerala. It is a shining example of the LDF's political policy of protecting the public sector. The newsprint factory, which had lain closed for three years, was taken over and reopened in May 2021, and now works as a public sector company wholly owned by the Kerala government under the name 'Kerala Paper Products Limited' (KPPL). The start of commercial paper production was inaugurated on the last Kerala Piravi day. The Chief Minister and the Industries Minister, who led these historic steps, deserve congratulations. Not only did it protect the jobs of the workers of the Vellore newsprint factory, which had been a central public sector unit; it is also a step that inspires the trade unions and the working class fighting against public sector privatisation.

The Hindustan Paper Corporation was formed in 1970. In 1971 the Centre approved the Kerala newsprint project. On June 10, 1975 the Union Industries Department laid the foundation stone for T A Pai's project. The government acquired and handed over 780 acres in the Vellore and Mulakkulam panchayats. Some of those who gave up land got jobs. On February 26, 1982 the first reel of paper came out of the company.

The institution grew slowly to become the country's number one paper company. There were years when it made profits of up to Rs 90 crore. It gave employment to about ten thousand people, including about 1,700 permanent employees, about 1,200 casual and contract workers and those employed indirectly. The Hindustan company was given 'Miniratna' status. It was the neoliberal policies of the 1990s that led the company into crisis. With old technology, Hindustan Newsprint struggled to survive. The removal of the import duty on newsprint was also a setback.

In 2002 the Vajpayee government issued an expression of interest to sell HNL. It backed off after strong opposition from the workers. In 2016 the Modi government again began the sale process. The workers began a united struggle against this policy. The LDF government opposed the sale. The Centre's position was that Kerala could take part in the tender. On April 13, 2017 the Legislative Assembly passed a resolution against the sale of the newsprint factory. At a programme in Kochi attended by the Prime Minister, Chief Minister Com. Pinarayi Vijayan announced that the government was ready to take over HNL.

When liquidation of the parent company, Hindustan Paper Corporation, began in June 2019, HNL was in crisis. The state government brought it into its ownership by approaching and bargaining with the liquidator appointed by the National Company Law Tribunal. Once it came into state ownership, repairs began. On May 19 the Chief Minister inaugurated the restart of the company. Commercial production began on November 1, 2022. If it had been sold, all 780 acres of the factory would have passed into the hands of private monopolies.

No other government in the country takes a stand like the one the LDF government has taken against central public sector units being signed over to corporates one by one. The firm stands the Kerala government takes, not only in protecting the public sector but also in protecting constitutional values such as secularism, democracy, social justice and federalism, inspire all the people fighting against central policies. The LDF government follows a policy of protecting and developing state public sector units. The central public sector company BHEL had formed a joint venture with KEL, a state public sector company in Kasaragod. BHEL withdrew from the agreement unilaterally. The state Industries Department stepped in to protect KEL, which would have moved towards closure, and restarted its operations.

The state government opposed the move to close Instrumentation, a central public sector unit in Palakkad, and expressed its readiness to take it over and run it. For this reason alone, Instrumentation has not been closed. The Centre has not given full approval to hand it over to Kerala. BEML, a central public sector company at Kanjikode in Palakkad, is also under threat of privatisation. It operates on 300 acres leased by the Kerala government. The workers are in a united struggle against the privatisation move, and the Kerala government is also resisting the privatisation.

The Centre has also decided to privatise Hindustan Life Care, which operates in the state, and five NTC mills. The NTC mills lie closed, and about three thousand people have lost their jobs. Since 2011 no central investment in industry has come to Kerala.

LDF governments have always been committed to protecting the public sector. They have also been taking steps to protect jobs in the traditional sectors. Building on the achievements so far, the government is working to create a new Kerala. The central government and the Sangh Parivar are trying to squeeze the state financially and to stage a coup using the Governor. As the people of Kerala fight this unitedly, the LDF government's measures give them confidence.

Com. Elamaram Kareem MP
CITU State General Secretary