Tamil Nadu Newsprints and Papers Limited, one of Asia's largest paper manufacturing units, has stopped production due to water scarcity, TNPL sources said here on Sunday.
The first unit of the TNPL had closed two months ago and the second had to be closed last night due to "very poor water inflow," the sources said.
Started in 1985 in Karur district of Tamil Nadu, this was the first instance when production had been stopped completely and authorities said they were keeping their fingers crossed about its opening in the near future.
With the stoppage of production, an estimated loss of Rs 1.5 crore could be incurred every day, sources said.
The situation was unlikely to improve till cauvery water from Kabini in Karnataka, reached the Mettur reservoir, they added.