KOTTAYAM: The Hindustan Newsprint Limited (HNL) in Velloor, which was supposed to be taken over by the private sector, has been acquired by the state government. The National Company Law Tribunal decided to give the factory to KINFRA, a government institution. This will make way for the resumption of newspaper production in Velloor. The first rubber park will also become a reality with this.

KINFRA has to pay Rs 146 crore to clear bank liabilities and salary arrears in order to acquire HNL. With this, the company will belong to Kerala. The law tribunal had initially sought Rs 360 crore. KINFRA got the chance after the tribunal rejected the tender of Sun Paper which quoted the lowest amount. The company will operate with the formation of a special governing body for the government-owned public sector undertaking. An amount of `250 crore has been set apart in the budget for this.

The HNL which had as many as 453 employees, 700 contract workers and 300 apprentices, was closed on January 1, 2019, due to mismanagement and debt.

The rubber company will be started on the CIAL model with an investment of Rs 1900 crore. An amount of Rs 4.5 crore has been sanctioned in the state budget for the initial activities. The Board of Directors was formed.