Cabinet decides to regularise contract workers at KPPL

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

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

In a statement, the Minister pointed out that the beneficiaries of the landmark decision are workers who lost their employment when the Central government-owned HNL was shut down. The State government had later taken over the company and reconstituted it as the KPPL. The decision reflects the government’s strong commitment to protecting workers’ rights and livelihoods.

The State had taken over the HNL by settling all financial liabilities towards employees in accordance with the resolution plan approved by the National Company Law Tribunal (NCLT). Shortly after the KPPL began operations, most of the former HNL employees were reappointed on a contract basis in various posts.

Productivity council

The government had constituted a human resources committee in 2021 to study the staff structure and recruitment requirements necessary for the KPPL’s operations. A productivity council was also assigned to provide consultancy support to this committee. Based on the reports of both the bodies and a detailed review by the Finance department, the government decided to regularise the contract workers. The employees will now be entitled to all statutory benefits that are applicable to permanent staff.

The Minister added that the KPPL has shown steady growth in turnover since the State government’s takeover. The company has already achieved ₹85 crore in sales so far during the 2025–26 financial year. Moreover, a ₹741-crore expansion project is currently under the government’s consideration.