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Context

• Plagued by inefficient administration, Hindustan Newsprints Limited - a centrally owned public sector entity ceased operations nearly four years ago. 
• Now, Kerala is writing a new history by taking over a defunct Central PSU through auction and resuming industrial-scale operations.

Details

• HNL was facing liquidation when the Kerala government took it up with a National Company Law Tribunal, with ₹146 crore bid. Funds raised through the Kerala Infrastructure Investment Fund Board (KIIFB) were disbursed.
• Later, Kerala chalked out the revival of the unit in four phases, which resumed operations as Kerala Paper Products Limited (KPPL) with effect from January 2022.
• The company intends to achieve an annual turnover of ₹3000 crores with a production target of five lakh metric tonnes. In the process, it will also create over 3000 jobs, which is equal to the total number of jobs that the public sector can create in the state in a period of four to five years.
• Thus, Kerala is now the centre-piece of an alternative model of development.

Final Thought

• Efficiency is an increasingly core component of government reform. In this context, State Governments pursuing innovative practices linked to efficiency and scaling the use of efficient practices in industrial development; will contribute to the economic growth of the nation.

Read: https://www.iasgyan.in/daily-current-affairs/insolvency-and-bankruptcy-code-39

https://www.thehindu.com/news/national/kerala/defunct-central-psu-becomes-centrepiece-of-alternative-industrial-development-model-by-kerala/article66082137.ece 

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