To meet the current paper and newsprint famine the Government is setting up three mills in different parts of the country. The new mills will be administered by the Hindustan Paper Corporation, which was specifically set up in the public sector for this purpose in May 1970.
The first report of the Corporation, which was placed on the table of the Lok Sabha to-day, says the three projects would be: (a) An integrated pulp and paper mill in Nagaland with a capacity of 30,000 tonnes per annum; (b) an integrated pulp and paper mill in Assam (Nowgong district) with a capacity of 80,000 tonnes per annum and (c) a newsprint mill in Kerala with a capacity of 75,000 tonnes per annum.
The report says all the mills would go into production during 1975-76. While the Assam and Kerala projects are being directly executed by the Corporation, the Nagaland project is being implemented through a subsidiary company which has been jointly floated by the Nagaland Government and the Corporation. In this joint venture, the Nagaland Government holds one-eighth of the share-capital, the rest being held by the Corporation.