TNPL To Invest Rs 680Cr For Capacity Expansion

Chennai: Tamil Nadu Newsprint and Papers Ltd will expand its capacity at an investment of Rs 680 crore that will take its printing and writing paper output to 3.65 lakh tonnes a year from the present 2.3 lakh tonnes. The plan envisages an increase in pulp production to 800 tonnes-a-day from the current 520 tonnes and an annual 15,000-tonne addition in printing and writing paper production capacity. TNPL will have enough raw material capacity to add a third paper machine to its existing two lines. The project, Mill Capacity Expansion, is being finalized. The company plans to bring in Rs 180 crore via internal generation and Rs 500 crore via borrowings. This expanded capacity will be in place by September 2009. The company had declared plans to establish a 400-tonne-a-day cement plant at a cost of Rs 45 crore using the lime sludge waste from the mill and fly ash from the captive power plant.