The Hindu Business Line : `2 foreign cos keen to enter newsprint sector in India'

"There are two foreign companies that are seriously looking to invest in a 3,00,000-4,00,000 tonne capacity mill in India," said Mr Gautam Thapar, Chairman, Development Council for Pulp, Paper and Allied Industry.

He was speaking on the sidelines of the inauguration of Paperex 2005.

The domestic manufacturers might be able to supply a maximum of 8.5 lakh tonnes, which is just about half of the total demand, leaving consumers to depend on the imported newsprint amounting to eight lakh tonnes.

Import option: The newsprint industry has nearly nil duty impositions and hence makes for an attractive proposition to import the same.

Mr Thapar was of the view that fairly soon there would be global scale newsprint manufacturers, well established and positioned in the country.

Domestic manufactures have previously seen revision of newsprint prices. Furthermore, it has been pointed out that with the newsprint manufacturing increasingly becoming capital-intensive, domestic producers have had to depend on imported raw materials and machinery, as the local machinery is supposed to be outmoded.

Challenges ahead: While explaining the challenges faced by the paper industry in general, Mr Thapar said, "Inadequate and high raw material costs, sub-optimal and obsolete technologies and accelerating energy costs are the main issues that we are surrounded with. We are hoping that the Government would act quickly."

As industrial plantation by the private sector has not been allowed so far, there have been discussions between the paper and pulp association lobbyists' and the Government. Of late, the discussions seem to be revolving around public-private partnerships between the two bodies to address the problem of raw material and plantations.

"It is difficult to balance different interests simultaneously," Mr Thapar said. "However, we are open to any form of help and aid that the Government may consider to ameliorate the current situation," he affirmed.

Tech upgradation needed: Echoing similar sentiments as Mr Thapar, Mr Jaydeep Chitlangia, President, Indian Agro & Recycled Paper Mills Association, said, "I believe that a core industry like paper, would be one of the growth propellers of the nation in the time to come and that we are not giving it adequate importance."

With the paper industry poised for a 6-7 per cent growth, measures such as the creation of technology upgradation fund that is under active consideration are eagerly awaited and hoped for.

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