TNPL plans to Add more 1,65,000 MT W&P Capacity in its Unit-II

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Read expansion news of Tamil Nadu Newsprint Limited is adding 1.65 Lac MT Writing and Printing Paper Capacity.

TNPL plans to Add more 1,65,000 MT W&P Capacity in its Unit-II

Trichy | 27 September 2018 | The Pulp and Paper Times

The market of Writing & printing (W & P) Paper looks fantastic in coming years. The launching of Ayushman Bharat Scheme could prove beneficial in pushing  the demand of W&P paper. This health scheme will cover 10 Cr. families, requiring documents like PAN, Aadhar etc of each family, mean more demand of paper will be put in place. In the light of sustainable demand of W&P segment, Tamil Nadu Newsprint and Papers Ltd (TNPL) is gearing up for the next phase of expansion, with its second unit wherein a hardwood ECF pulp mill will be installed in Phase 1 and a Paper Machine in Phase 2. The company is looking at an environmental clearance from the authorities and Phase 1 of the project is expected to commission by May 2021.

The company is also looking at a Mill Expansion Plan (MEP) at Unit II in a phased manner – Pulp Mill capacity of 400 TPD and 1,65,000 MT of Printing and Writing Paper with a total capital outlay of Rs 25.20 billion. For this, the company may have to go for borrowings from financial institutions/ Banks or other bodies. The existing borrowings together with proposed borrowings may go up to Rs 40 billion, and since it is beyond the existing limit of Rs 25 billion, the company is seeking the shareholders' approval to up the borrowing limits.

This requires shareholders approval.

"The process of obtaining Environmental clearance for the project has already commenced and Phase 1 of the project is targeted for commissioning by May 2021," said the company management in its latest annual report, on the expansion plans for ECF pulp mill capacity in the second unit.

The company, which has been focusing on keeping its status as the most environmentally benign mill in the country with least water consumption, is also looking at further reducing water consumption in the mills, said company sources. Over a period of time, the company has been using the technology of manufacture of paper from bagasse – the sugar cane residue. It has brought in new technologies in the company’s fold like ECF bleaching, Oxygen delignification, integrated Chlorine dioxide production, Wash presses, Odour free recovery boiler, Incineration of non-condensable gases, production of bio-gas from bagasse wash effluent, Deinked Pulp etc.

"To further better the operation, the company is examining the ways and means to reduce the mill water consumption. The mill is also examining the possibility of recycling and reusing the waste-water in order to reduce dependence on the fresh water," it added. Water consumption was reduced from 40 KL per ton in the previous year to about 27 KL per ton of paper in the financial year 2017-18, which is one of the lowest in paper industry.

As the Paper Board segment is identified as a growing segment compared to Paper TNPL thought it is prudent to foray into this market segment. Accordingly, a project for manufacture of Paper Board was conceived, and the TNPL Unit II emerged as part of this. TNPL commissioned a 200,000 MT per annum Multilayer Coated Paper Board machine (BM 4), along with a 30 MW captive co-generation power plant, in January 2016.

The company’s turnover during the year 2017-18 was at around Rs 30.37 billion and it has recorded a paper production of 3,53,959 MT. During the fiscal, it has achieved Paper sales of 3,52,937 MT of which domestic sales accounted for 77 per cent and exports was at 23 per cent. The packaging paperboard plant production was 1,41,851 MT during the financial year ended March 30, 2018, equivalent to 70.90 per cent of capacity. The packaging paperboard sales was 1,42,739 MT with domestic sales accounts for 86 per cent and exports at 14 per cent. Its market capitalization crossed Rs 34.53 billion-mark first time during the year on January 8, 2018. It has also generated 690.9 million units of power, of which 628.4 million units were consumed and 62.5 million units were exported to the state grid. Power drawn from State Grid constitutes only 1.77% of total power consumed.

During the year 2017-18, cumulatively 1,24,080 acres of land has been brought under company’s Farm Forestry and Captive Plantations schemes, benefitting 24,179 farmers. in 27 districts of Tamil Nadu. During the financial year, the company has reduced overall debt (Term Loan and Working Capital) to an extent of Rs 3.97 billion.

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