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The board of Tamil Nadu Newsprint and Papers Ltd (TNPL) today approved an outlay of ₹2,520 crore to implement in a phased manner a mill expansion plan at unit II in its Tiruchi plant.
The expansion of pulp mill with capacity of 400 tonnes per day and 1.65 lakh tonnes of printing and writing paper, according to a company announcement to the BSE.
The unit, which went on stream in 2016, has a capacity to produce 2 lakh tonnes per annum (TPA) of multi-layer coated boards along with a captive power plant and other utilities/auxiliaries.
For the year ended March 31, 2018, TNPL reported a net loss of ₹42 crore on revenue of ₹3,159 crore against a net profit of ₹264 crore on revenue of ₹3,139 crore in the previous year.
Due to failure of monsoon and consequent water shortage, both hardwood pulp line and paper machine Number 2 were stopped from April to July 2017. This resulted in paper production loss of 46,041 tonnes and necessitated purchase of pulp from the market at a higher price. Both usage of high cost pulp and drop in paper production was the major contributor for the loss.
To avoid stoppage of plant for want of water, the company has initiated action to augment the water storage by constructing one more reservoir, a company press release had stated.
The printing and writing paper production during 2017-18 was 3.55 lakh tonnes against the capacity of 4 lakh tonnes, while packaging board production was 1.42 tonnes against the capacity of 2 lakh tonnes, the release had said.
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