MP's Nepanagar Nepa Mill Faces Major Crisis As Coal Shortage Halts Newsprint Production, Seeks ₹674 Crore Relief
Nepanagar (Madhya Pradesh): Newsprint production at Nepa Limited has stopped due to a coal shortage, even though both paper machines are fully operational and can produce 100,000 tonnes of newsprint annually. To resume regular operations, the mill needs a steady coal supply, working capital and financial relief. The mill's latest balance sheet shows an accumulated loss of about Rs 1,055 crore.…
The Nepa Limited mill in Nepanagar, Madhya Pradesh, is facing a major crisis after a coal shortage halted newsprint production despite both paper machines being fully operational. The mill, which can produce 100,000 tonnes of newsprint annually, requires a steady coal supply to resume regular operations. Management has reported an accumulated loss of about Rs 1,055 crore and is seeking ₹674 crore in relief, including a waiver of a Rs 247 crore government loan and Rs 427 crore in accrued interest.
The mill's current financial situation is heavily burdened, making it difficult to secure commercial bank loans. The mill supports the economy of Nepanagar and about 80 villages, providing employment, transporting goods, supplying drinking water, and recycles waste paper. Officials have met with representatives from the Ministry of Heavy Industries, South Eastern Coalfields, and Western Coalfields to seek assistance.
The mill's suspended production has significant economic implications, as India imports roughly 60% of its newsprint, and full production at Nepa could reduce imports and save foreign exchange.
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