The Hindu Business Line : HPC to implement Rs 660-crore technology upgradation plans

Even as its existing paper mills in Assam are operating under pressure for inadequate availability of raw material (bamboo) from local sources, the state-owned Hindustan Paper Corporation (HPC) is committed to implementing the Rs 660-crore modernisation and technical upgradation plans in these two mills, to be completed latest by 2011-12.

HPC is also committed to investing in two more projects. One will be a greenfield project in Uttar Pradesh with an annual production capacity of 3,00,000 tonnes of writing and printing paper. This project is estimated to cost Rs 3,700 crore.

The other project is the revival of Nagaland Paper & Pulp Company Ltd's (NPPC) mill at Tuli in Nagaland. NPPC's annual capacity will be doubled to 66,000 tonnes from 33,000 tonnes.

Highlighting the performance for the year 2005-06 and future plans, the Chairman of HPC, Mr Raji Philip, told newspersons here on Wednesday that the capacity of its Kerala based wholly owned Hindustan Newsprint Ltd (HNL) would be raised to 2,70,000 tonnes of newsprint from 1,00,000 tonnes, entailing an investment of about Rs 700 crore.

He said that HPC as a group company has posted a profit before tax (PBT) of Rs 105 crore during the fiscal 2005-06 on a record sales turnover of about Rs 1,020 crore, while it aims at a sales turnover of Rs 1,177 crore and a PBT of Rs 150 crore in 2006-07, based on a production mandate of 333,000 tonnes, which consists of 218,000 tonnes of printing and writing paper and 115,000 tonnes of newsprint.

However, it has exceeded the combined installed capacity of 3,00,000 tonnes for the fourth time in succession in 2005-06, recording a combined production of 3,20,118 tonnes.

HPC has plans to achieve a production target of 8,00,000 tonnes and a sales turnover of about Rs 3,000 crore by 2010-11.

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