Kerala Cabinet Approves $89 Million Expansion for KPPL in India

Kerala’s State Cabinet in India approved a $89 million expansion project (₹741 crore) for Kerala Paper Products Limited (KPPL), the state-owned paper manufacturer at Velloor in Kottayam district. The initiative aims to enhance production capacity and diversify into high-quality paper and packaging products amid rising demand from e-commerce, food delivery, retail, plastic bans, and consumer shifts in India.​

KPPL originated from the Kerala government’s $18 million acquisition (₹146 crore) of Hindustan Newsprint Limited’s (HNL) assets in 2021 after its 2019 closure; operations restarted in 2022. Funding includes $21 million state equity (₹175 crore), $3 million from Kerala State Industrial Development Corporation (KSIDC) (₹25 crore), and $65 million bank loans (₹541 crore).​

The project targets writing/printing paper, copier paper, specialty grades, and packaging boards to cut import reliance and freight costs in India. It also plans a paper cluster for ancillary industries. Completion is targeted within 24 months, projecting $180 million annual turnover (₹1,500 crore).​

Industries Minister P. Rajeeve called it a historic revival, India’s first state takeover of a closed central PSU leading to expansion