The correct answer is option 2, which is a newsprint factory. Nepanagar is a town located in the Burhanpur district of Madhya Pradesh, India. It is well-known for its newsprint factory, which is one of the major industries in the area. Newsprint is a type of paper used for printing newspapers, magazines, and other publications. The factory in Nepanagar produces newsprint from wood pulp, which is sourced from forests. This industry plays a significant role in the local economy, providing employment opportunities and contributing to the overall development of the region. It is important to note that while Nepanagar does not have a sugar mill, steel plant, or heavy engineering plant, these industries may exist in other parts of Madhya Pradesh.