Tamil Nadu Newsprint and Papers Ltd will be self-sufficient in paper pulp capacity with the commissioning of a 300-tonne-a-day deinking plant next month.
The company informed shareholders today it will commission the plant, which will generate paper pulp from used paper.
This will add to its existing pulping capacity to about 840-tonnes-a-day of bagasse, which is sugarcane fibre and wood pulp. This is expected to generate a small surplus. The significance is that the printing and writing paper manufacturer will be able to fully do away with costly imported pulp.
The company is also strengthening its raw material capacity by expanding its pulpwood plantation programme with over 100,000 acres of plantations this year. As of 2011-12, it had brought over 82,000 acres under pulpwood plantation by involving more than 15,000 farmers. This gives the company over 2.76 lakh tonnes of pulpwood annually, which is more than half its requirement of pulp wood.
Securing raw material resources insulates the company from the dependence of imported pulp and volatility in the market.
The company has also commissioned a 600-tonne-a-day cement plant earlier this month. This facility uses lime sludge and fly ash waste as raw material. Trial productions commenced on September 5.
The company is also strengthening its effluent and waste treatment systems. A novel feature is the use of black liquor solid, a waste generated in the pulp mill, as bio-fuel.
It generates power from the steam using the waste as a fuel. This has helped the company generate revenue from the sale of Renewable Energy Certificates. Between January and March 2012 it generated over 27,600 RECs to earn Rs 4.5 crore. The company is set to generate over Rs 20 crore annually.