Coal shortage halts newsprint output at India's Nepa Limited mill
Nepa Limited has halted newsprint production at its mill in Nepanagar, Madhya Pradesh, after running out of coal, although both paper machines, with combined capacity of 100,000 tonnes a year, are in working order. The mill, with accumulated losses of about USD 111m (INR 1,055 crore), is seeking waivers of a USD 26m (INR 247 crore) government loan and USD 45m (INR 427 crore) of accrued interest, and is in talks with the Ministry of Coal and coal producers to restore supply.
Why this mattersNewsprint Nepa cannot make is met from imports, which already cover about 60% of Indian demand.
- Both paper machines at Nepa Limited's Nepanagar mill are operational but idle for lack of coal, with combined capacity of 100,000 tonnes of newsprint a year
- Accumulated losses stand at about USD 111m (INR 1,055 crore)
- Management is seeking waivers of USD 26m (INR 247 crore) in government loan principal and USD 45m (INR 427 crore) in accrued interest
- The mill pays about USD 6m (INR 57 crore) in annual interest against profit of less than USD 2.6m (INR 25 crore) a year
- The Nepanagar municipal council owes the mill about USD 1.1m (INR 10 crore)
- India imports roughly 60 percent of its newsprint requirement
Sources
freepressjournal.in