Industry & Economy
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Paper, Board & Newsprint
Call to accord core industry status to paper
Dharini Nagarajan
New Delhi
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Nov. 11
THE paper industry is all set to enter the boom phase in the near future with a growth rate of five to six per cent.
According to Mr Jaydeep Chitlangia, President, Indian Agro and Recycled Paper Mills Association (IARPMA), the paper industry needs to be accorded the status of a `core industry' as it will be expanding at a fast pace in keeping with the growing demand. The industry could also be a major source for rural employment.On the sidelines of announcing the Paperex Fair to be held in the Capital from December 3-6, he said a major concern is the lack of raw material and increasing costs of inputs. On the issue of rising prices, Mr Chitlangia said it was a `simple mismatch between demand and supply'. He believes that increasing demand would be the driving force for expansion of paper plants.
The demand for domestic paper is expected to grow at a compound annual growth rate of 6-7 per cent.The estimated investment made for expansion of capacity and production over the next three years amounts to Rs 12,000-15,000 crore.
Being tremendously capital- intensive, the sector has immense potential to grow if necessary support is provided. `We do require a technology upgradation fund similar to the textile industry,' Mr Chitlangia said.
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