Industry & Economy
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Paper, Board & Newsprint
`Paper units must explore alternative input sources'
Our Bureau
PLEADER: Dr V. Krishnamurthy
Chennai
,
Feb 24
The paper industry will have to identify solutions to the problem of raw material scarcity, involve farmers, and allay fears of denudation of forestland, according to Mr V. Krishnamurthy, Chairman of National Manufacturing Competitiveness Council.
Addressing the Indian Pulp & Paper Technical Association's (IPPTA) annual seminar today, he said that the paper industry is perhaps the only industry to have developed without assured raw material supply over the last 50 years.
But the potential is available in terms of landmass - undeveloped degraded forestlands. This is "an insult to our managerial talent," he said.
The Government would give it the needed policy support as it is keen on developing industries with the potential for backward linkages in rural areas.
Paper, food processing, leather, and textiles, which depend on raw material from rural areas, need to be developed.
Mr N. Gopalaratnam, Chairman and Managing Director of Seshasayee Paper and Boards Ltd, said that the paper industry needs to streamline waste paper recovery to increase its availability as a raw material. The industry and the Government will have to work together.
Mills should focus on improving scale of operation, environmental performance, and cost and quality competitiveness.
The paper industry will have to explore alternatives in wood, agro-residues, and waste paper to enhance the raw material base.
Mr Kasi Viswanathan, President of IPPTA, said that the demand for paper is expected to double to 120 lakh tonnes in the next decade. This would mean bringing in investments of Rs 35,000-40,000 crore.
But investments apart, new mills are not coming up because of raw material constraints. Plantations should be encouraged to improve raw material availability.
Achieving economies of scale, addressing environmental issues, and creating a skilled labour force are some of the concerns facing the industry, he added.
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