The future of Nepa Limited, one of Asia’s oldest and largest government-owned newsprint mills, hangs in the balance as production has once again come to a grinding halt. Located in Nepanagar, Burhanpur district of Madhya Pradesh, this iconic company was once the sole manufacturer of newsprint in India, operating under the Union Ministry of Heavy Industries.

The Roots of the Crisis: Despite massive financial infusions and a much-publicized revival in 2022 after being shut for seven years, the mill is currently paralyzed. A severe shortage of raw materials and lack of working capital are cited as the primary reasons for the production stoppage. The massive investments in new machinery have failed to yield results, leaving the factory in a state of decay.

Impact on Workers and Local Economy: The shutdown has triggered an economic depression in Nepanagar. With pending salaries and a shrinking workforce, employees are facing extreme hardships. The entire trade and local market of Nepanagar are dependent on the mill; hence, its closure has led to widespread unemployment and business losses. Thousands of families are now looking toward the central government, fearing the permanent loss of their livelihoods.