The Hindu Business Line : TNPL plans to expand capacity

TAMIL Nadu Newsprint and Papers Ltd (TNPL) plans to invest Rs 595 crore to modernise and expand its production facility. This will increase its capacity by about 15,000 tonnes a year from the present 2.3 lakh tonnes, according to sources in the know.

Dovetailed with this project, it is launching a farm forestry programme to augment captive availability of pulpwood for raw material. Initially, the company will tie up with farmers to cover about 2,500 hectares and expand acreages annually over the next five years.

Of the total investment planned, TNPL will bring in Rs 150 crore with the balance to be raised through both domestic and foreign currency borrowings. The expansion will be completed in two years, the sources said.

This will see TNPL set up a new pulp line with a capacity of about 300 tonnes a day, along with the modernisation of the existing pulp mill. Both the units will conform to `best environmental standards' and adopt the elemental chlorine-free technology. Also, the overall efficiency of the production facilities will be increased.

It may be recalled that TNPL engaged AMEC E&C Services Ltd, Canada, international consultants, for carrying out the detailed market study and feasibility report last year.

AMEC E&C is a market leader in construction with expertise in pulp and paper and has a strategic alliance with SPB Project Consultants, of the Chennai-based ESVIN group, and AF-IPK, Stockholm.

Under the farm forestry programme, TNPL will invite farmers within a 200 km radius of its plant in Karur district to cultivate pulp wood species such as casuarinas and subabul.

The company will supply the seedlings, raised at its nursery, at subsidised rates and assure them a minimum support price. Banks will provide assistance at competitive interest rates. The aim is to procure about 65,000 tonnes of pulpwood from the fifth year, they said.

Addressing the company's annual general meeting here on Friday, Mr Rameshram Mishra, TNPL's Chairman, said that the company has saved Rs 23.57 crore by restructuring its debt profile by swapping a $45-million loan from the World Bank.

It availed of an FCNR (B) loan from a consortium of banks led by State Bank of India during December 2002. This also helped it to cut the interest by Rs 11.90 crore during the year.

TNPL is optimistic about the current year in terms of demand and price. The market for surface sized papers and copier papers is expected to grow by 10 - 15 per cent.

The company will also invest in a wind farm to augment its existing capacity of 21 MW by an additional 6 MW. This will involve an investment of Rs 25 crore, sources said.

More Stories on : New Projects | Paper | rd & Newsprint

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page