Kerala cabinet has approved a Rs 741-crore expansion of KPPL to boost capacity, diversify products, and meet rising paper demand.
Feb 12, 2026
The Kerala government has approved a Rs 741-crore expansion project for Kerala Paper Products Limited (KPPL), the state-owned paper manufacturer at Velloor in Kottayam district, marking a major push to revive public sector manufacturing. The project aims to enhance production capacity and diversify into writing and printing paper, copier paper, specialty grades and high-quality packaging boards, driven by growing demand from e-commerce, food delivery and retail sectors amid plastic restrictions.
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Of the total outlay, Rs 175 crore will be infused as state government equity, Rs 25 crore by KSIDC, while Rs 541 crore will be raised through bank loans. KPPL, revived from the assets of the defunct Hindustan Newsprint Limited, is expected to achieve an annual turnover of Rs 1,500 crore once the expansion is completed within 24 months.
