The board for reconstruction of public sector enterprises (BRPSE) has recommended closure of the two units of the sick public sector undertaking Hindustan Photo Films (HPF). The company has two manufacturing plants — the main factory at Ootacamund, Nilgiris, and a plant at Ambattur near Chennai in Tamil Nadu. HPF had started production in 1967.

According to the sources at BRPSE, the board has recommended implementation of 2007 pay scale for 4000 employees of HPF before giving voluntary retirement to all.

It also said that the land bank of the company could be sold to pay back to the bankers and the land belonging to the Tamil Nadu government should be returned to them. The board has also suggested that the Indian Tourism Development Corporation could set up a hotel on the land belonging to the company.

The BRPSE in 2012, had recommended implementation of 1997 pay scale for the employees of HPF as a part of the revival proposal for the company. There was also a proposal for diversification and modernisation as a part of the revival proposal. The proposal involved diversification into new technology by using the existing infrastructure with modifications and installation of minimum additional facilities. 

HPF was established in 1960 with the objective of ensuring regular supply of raw film to the motion picture industry, x-ray films for health services and defence forces and special photographic materials for photographers. But over the years the company had been incurring losses as it had failed to change with the times. The company had turned sick and its revival had been referred to the board. The net loss of Hindustan Photo Films (HPF) for the year 2008-09 was Rs 890.26 core, Rs 1009.21 crore for 2009-10, Rs 1156.65 crore for 2010-11, and stood at Rs 1208.77 crore for 2011-12.
The recommendation of the BRPSE has been sent to the cabinet for the final approval.