NEPA: Ready for big 'bang' with 1,00,000 TPA high quality W & P and Newsprint paper production in 2020

NEPA: Ready for big 'bang' with 1,00,000 TPA high-quality W & P and Newsprint paper production in 2020

Nepanagar | 15 June 2020 | The Pulp and Paper Times: 

In this Covid era, where the paper demand is too weak to resume paper production in continues manner, digitization has also been shrinking the writing and printing paper market significantly, The Public sector undertaking NEPA paper mill is set to penetrate the market with high quality newsprint and writing and printing paper in 2020. The state-of-the-art up-gradation of plant and machinery will make NEPA more competitive in terms of high quality paper production. The mega 1,00,000 TPA production capacity may eclipse the market demand in central India for other major players in W & P segment.

  "After a few years of Stress, the paper industry in India is now well placed. In the recently announced union budget 2019-20, the Govt of India has removed end use based custom duty exemption for News Print and thus provided a level playing field to the Indian Newsprint manufactures. NEPA would be one of the beneficiaries of this step"

"In the post Revival & Mill Development Plan (RMDP) scenario NEPA is diversifying into writing and printing paper segment in addition to the traditional newsprint segments. In both segments the quality and brightness of paper produced would be high due to a state-of-the-art De-inking plant being set up under the ongoing RMDP," said than Chairman-cum-Managing director Cmde A N Sonsale in the annual report of FY 18-19.

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Cmde Sonsale further describes in the report that “Whereas for the newsprint segment NEPA has its traditional customer base and marketing channels, in case of new area of writing & Printing paper new marketing agencies and channels would be established with a facility available to vary % of either segment based on market demand, the Company expects to optimize its production in both segments to maximize realization from the market”.

Looking to the ongoing RMDP work, product diversification and change in manufacturing process to produce good quality Writing & Printing and Improved Newsprint grades. In times to come NEPA expects to continue its contribution in Research & Development in the field of paper technology.

Revival & Mill Development Plan (RMDP) 

Revival & Mill Development Plan (RMDP): A revised support package for NEPA was sanctioned by the GoI on 3rd October, 2018 with a total value of Rs. 469.41 Cr. that include Rs. 277 Cr towards revised cost of RMDP, Rs, 101.58 Cr. towards salary support and statutory dues and Rs. 90.83 Cr. towards Voluntary retirement of 400 employees. 

The RMDP has since been reactivated and significant progress has been achieved in the ongoing modernization project of the mill. Out of the major components, De-inking plant, both the paper machines and power plant erection is in progress Work for new effluent treatment plant has commenced. This would ensure meeting of higher environmental standards promulgated by pollution control board including zero liquid discharge. Real time online monitoring system for boiler emission is being installed and chimney height is being doubled that would ensure that Nepanagar environment remains protected.

Company was referred to BIFR in 1998. However, the revival plan of the company was approved by GoI in September 2012 only. BIFR sanctioned the revival scheme of the company in March 2014. The Revival Plan envisaged capital investment of Rs.285 crores for installing a new 300 TPD De-inking Plant, Refurbishment of both Paper Machines, Renovation of 12.27 MW Captive Power Plant and renovation of existing 132 kv Substation. 

Govt sanction, BIFR approval and environmental clearance took almost 6 years after cost estimation as a part of original TEFR in 2010.The project cost which was approved at Rs. 285 crore has got escalated to Rs. 434 crore (net of EPCG benefits). This increase was mainly on account of delays, growth of work and as per actual price discovery based on open tendering. 

Therefore, a plea for an additional budget of Rs.149 crores on account of cost escalation and Rs.128 Cr in lieu of loan from financial institutions was submitted through the Cabinet Note to GoI in December, 2017. The cabinet Note was sanctioned by the GoI on 3rd October, 2018 with a total support package of Rs. 469.41 Cr. that include Rs. 277 Cr towards revised cost of RMDP, Rs, 101.58 Cr. towards salary support and statutory dues and Rs. 90.83 Cr. towards Voluntary retirement of 400 employees. 

In order to monitor the RMDP work ,(Department of heavy Industries) DHI has constituted a high Level RMDP monitoring committee headed by AS&FA from DHI. A technical Committee comprising members from Central Paper & Pulp Research Institute (CPPRI), Saharanpur, M/s BHEL, Bhopal and M/s Bridge & Roof (B&R), Kolkatta has been constituted to regularly visit and monitor the project progress on site and report to the Govt. 

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As per current estimates the RMDP is expected to complete by early 2020. On completion of the RMDP, company will be able to manufacture 100000 TPA of Newsprint of higher brightness and also the Writing & Printing Paper and expects to become self sustaining.

Environment Management and Pollution Control 

Eco friendly technology has been adopted by the company earlier for manufacturing the newsprint and writing printing paper by using waste paper as raw material. The process is environment friendly and generates no pollution. Under RMDP following measures have been included for abatement of pollution:

 "Most modern solid waste handling system (Sludge handling system) is added to recover the fibre as well as the E.T. Plant augmentation for waste water treatment plant to meet zero Liquid discharge. 

“E.T. Plant will have real time Continuous Effluent monitoring system (CEMS) to monitor effluent parameters, as per pollution control board norms. 

"To control air pollution in new Power house, four field Electro static precipitator (ESP) will be installed. Plant will also have dust suppression system and bag filters to trap fugitive emissions near coal & Ash handling systems. For curbing sulphur content in flue gases, lime feeding system & new chimney with increased height also considered. 

"To monitor the air pollution of Power Plant, Real time Continuous stack Emission Monitoring System (CSEMS) and Real time Continuous Ambient Air Quality Monitoring System (CAAQMS) with weather station will be installed, as per pollution control board norms.

 "Hazardous waste, disposal i.e. used oil is being disposed through MoEF certified oil re-processor unit and waste resin is disposed to MP Waste Management Project Pithampur M.P.(as per guideline of Pollution Control Board). 

"Regular tree plantation is carried out in and around township during Environment day to maintain clean, green and healthy environment.  

Research & Development and Quality & Technology

Research & Development (R&D) Center of the company is registered with the Department of Scientific and Industrial Research (DSIR) Ministry of Science and Technology, Government of India. Experiments and trials in R&D centre have given Nepa Ltd. a new vision.

Over the years, the Quality Control team has played crucial role in testing of raw materials, chemicals and other incoming entities. 

 After RMDP Nepa will produce Newsprint & writing printing paper of higher brightness using recycled fibre of various origins viz. Indigenous & Imported one. This technology is not only eco friendly but also will utilize modern De-inking plant to get the pulp of better quality and brightness.

In addition to this many other testing's like Water & chemicals testing etc. will also be carried out for power house, process use as well as for domestic use at Nepa Mill Laboratory to ensure the quality of treated drinking water supplied to Nepanagar township, after treatment in Nawtha Treatment Plant. The samples are taken periodically for testing to decide the dosing of chemicals for water treatment. 

Production & Sale

During the year 2018-19 no production activities were carried out, as the Paper machines have been stopped completely for Revival and Mill Development Plan (RMDP) work from 25.07.2016. Total sales during the year were Nil as compared to 118 MT (as our second quality production rolls sold to the customer) in previous year (i.e. in the year 2017-18). Hence average sales realization reduced to Nil from Rs. 25481/- PMT in previous year.

in case of new area of writing & printing paper, new marketing agencies and channels would be established with a facility available to vary % of either segment based on market demand"

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