The Hindu Business Line : Paper industry seeks sops to keep Chinese, Indonesian players at bay

The slowdown in the global market notwithstanding, India has emerged as the fastest growing paper market in the world showing a 10 per cent growth in per capita paper consumption.

From 7.5 kg per capita consumption in 2007-08, the figure has gone up to 8.3 kg.

More than Rs 13,000 crore of capital expenditure is targeted at capacity expansion, modernisation and enhancement of efficiencies by the IPMA member mills in the next two to three years to add more than 3 million tonnes (mt) of capacity and improve cost competitiveness.

“Pulp and paper industry is growing rapidly with an estimated CAGR of 7-8 per cent projected over the next decade. The installed capacity in the country is all set to grow to 11.2 mt per annum by 2010 from 9 mt.

“IPMA member mills have already put in place a short and long-term aggressive investment programme,” Mr Pradeep Dhobale, said at the ninth AGM of Indian Paper Manufacturers Association on Friday.

The industry has invested over Rs 3,000 crore to assimilate cleaner technologies in adherence to Charter of Corporate Responsibility for Environment Protection (CREP) put in force by the Ministry of Environment.

IPMA believes that in view of the global meltdown the Asian paper market has become vulnerable and major players in Indonesia and China are all set to push large quantities of coated and uncoated wood-free grades of paper into the Indian paper market. China has reportedly re-introduced export incentive recently which was withdrawn on protests from other global players.

The association emphasised on enhancing the peak rate of Basic Custom Duty from 10 per cent to 15 per cent on paper/paperboards as an effective measure to thwart the emerging threat of unbridled import.

In this regard, IPMA has also asked for re-introducing the component of Special Additional Duty.

Meanwhile, Mr M.L. Pachisia, Managing Director, Orient Paper & Industries Ltd, took over as the President, while Mr Madhukar Mishra, Managing Director, Star Paper Ltd, took charge as Vice-President of IPMA.

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