Cabinet decides to regularise contract workers at KPPL

The State Cabinet on Wednesday decided to regularize all agency workers of Kerala Paper Products Limited (KPPL), Velloor, which was formed after the state government took over the defunct Hindustan Newsprint Limited (HNL).

According to Industries Minister P. Rajeeve, a total of 181 contract employees will now be offered permanent appointments.

In his statement, the minister pointed out that the beneficiaries of the landmark decision were the workers who lost their jobs when the Central government-owned HNL was shut down. The state government later took over the company and re-established it as KPPL. The decision reflects the government’s strong commitment to protecting workers’ rights and livelihoods.

The government had taken over HNL by clearing all financial liabilities to the employees in accordance with the resolution plan approved by the National Company Law Tribunal (NCLT). Soon after KPPL started operations, most of the former HNL employees were reappointed on contractual basis to various posts.

productivity council

The government had constituted a human resources committee in 2021 to review the staff structure and recruitment requirements for KPPL’s ​​operations. A productivity council was also appointed to provide advisory support to this committee. Based on the reports of both institutions and detailed scrutiny by the Finance department, the government decided to regularize agency workers. Employees will now have the right to benefit from all legal rights that apply to permanent staff.

The Minister added that KPPL has shown steady growth in its turnover since the State government takeover. The company has clocked sales of ₹85 crore so far in the financial year 2025-26. Additionally, an expansion project worth ₹741 crore is currently under government consideration.