2. The present requirement of India is about 25,000 MT per
annum and is mostly met by imports.
A security paper mill was set up by Govt of India in 1967 at
Hoshangabad to manufacture various security papers
including banknote paper. As the paper mill is very old and
mostly engaged in manufacture of other security papers, the
mill is able to meet only around 5% of present requirement.
MOF, GOI decided to set up 3 State-of-Art production lines
for manufacture of banknote paper, two lines at Mysore in a
green field environment and one line at existing security
paper mill, SPM, Hoshangabad as expansion.
The planned capacity of the green field project at Mysore is
12,000 TPA and that of SPM Hoshangabad is 6000 TPA.
3. The state of art machinery with highly advanced
technology will be a new milestone in the history of
As the both the projects are going on at different
locations two separate presentations are envisaged,
one for the Green Field Project at Mysore and
another for expansion of security paper mill at
This presentation is about Green Field Project,
Bank Note Paper Mill India Private Limited
4. The 50:50 JV Company between SPMCIL and BRBNMPL
was incorporated on 13th October 2010, Bank Note Paper
Mill India Private Limited (BNPM) with its Corporate office
at Bangalore and the Paper Mill at Mysore.
2 State-of-Art production lines have been planned for
manufacture of 12,000 TPA banknote paper, at Mysore by
incorporating and establishing a new JV Company.
The scope of main paper machine supplier includes design as
per the specification and requirement of banknote paper,
manufacture, supply, install, commission, trial production
and training of staff for regular operation and maintenance.
BNPM will be an integrated paper mill with sections of
manufacturing; Pulping and bleaching, Stock preparation,
Paper making, Sheeting & packing and an exclusive section
Mould cover manufacture shop.
5. The most of the special type of machinery are imported
from Germany, designed and manufactured as per the
specification and requirement of banknote paper.
State of art machinery has been chosen with latest
available technology with the ambition of making the
paper mill, the best in the world.
All the utility services have been sourced from India.
There are around 30 such packages.
The present estimated cost of the project is around Rs
1500 Cr. and the commissioning of the 1st line is
expected around end of Dec 2014.
6. The innovative decision of MOF, Govt. of India to develop
capability in India for the manufacture of banknote paper
indigenously without a JV partner from abroad, in
contravention with the opinion of some experts in the field.
Setting up of a Green Field Project as a Special Purpose
Vehicle of Govt. of India by establishing a JV Company,
Bank note Paper Mill India Private Limited (BNPM), by both
the user companies, SPMCIL and BRBNMPL, and adopt &
inculcate world class work practices & culture and produce
banknote paper of international quality.
Procurement of the special purpose machinery through
global tendering process as per our specification to suit
incorporation of security features of Indian banknote.
7. Transfer of latest technology and latest process without a
technology partner. Acquiring the knowledge and skill
required for regular operation and maintenance of most
advanced and automated paper machines through OEM.
Getting the automated banknote paper mill machinery
with specially designed DCS and QCS and integrating
with continuous special purpose pulping system.
Procurement of highly automated mould cover shop, to
overcome difficulties faced by the present paper makers.
Procurement of automated, special purpose sheeting
system with registered cutting, automatic inspection and
8. Implementing automatic material handling system.
- The automatic raw material feeding from raw
yard to fully automatic continuous
bleaching and pulping section.
- Automatic feeding of the trims to the pulper.
Incorporation of online inspection by using cameras,
sensors and other feedback systems at various stages of
manufacture of paper to minimize the rejection and
increase overall efficiency.
Designing, procuring and implementing sophisticated
security surveillance, operator surveillance system and
access control system to ensure safety and security of the
9. Designing, procuring and implementing advanced effluent
treatment cum recycling plant to make the Paper Mill
totally environmental friendly. Making a Zero discharge
Paper Mill, probably first time in the country and in the
world in similar industries.
Designing, procuring and implementing other 30 utility
packages and systems, all indigenously, as per the
requirement of main machine and process and integrating
the same to main DCS supplied by the paper machine
Making a world class R&D Laboratory for future
10. Effective utilization of the land for a green field project.
Only around 35 acres of land will be used for two lines of
paper machine to produce 12,000TPA banknote paper,
probably one of the lowest in the world.
World class automation and optimum utilization of human
resources. Planned to employ only around 350 staff for
regular operation and maintenance of TWO lines in 24x7
basis for the green field paper mill.
Set optimum time target to set up a green field banknote
paper mill after incorporating a new JV Company.
Procuring, installing and commissioning highly automated
special purpose machine through global tendering in only
around 4 years.
11. Targeted highly competitive cost for the manufacture of
banknote paper. Expected cost per Ton of paper
produced will be around Rs 7.0 L as against Rs 9.0 L
(Import cost) for the comparable grade.
Targeted to establish the production at higher level of
machine speed (80-90 M/Min) compared to international
average speed of similar machines (around 60-70 m/min).
Use of special continuous bleaching process to minimize
use of chemicals for bleaching and pulping process.
Planned to minimize use of raw material by maximizing
the recycling of rejects.
12. Minimum use of natural resources. Water consumption
planned is less than 75 m3 per Ton of paper produced.
Planned for maximum recycling of water by the use of
special filtration plant and advanced effluent treatment
Planned to recover maximum secondary fibres from the
effluent before sending the same to effluent treatment plant
by the use of special type of fibre recovery system and this
will make the total plant more environmental friendly.
Planned for maximum use of energy efficient systems.
Adoption of VFDs, use of energy efficient and solar
illumination systems, heat recovery systems, etc.
13. Indigenization of banknote paper production will avoid
dependency on foreign country.
Indigenization of banknote paper production will ensure
security of sovereign product.
In war like situation, or due to imposition of sanctions like
that happened in Iran, indigenization of banknote paper
production will avoid facing serious difficulties for
maintaining a sovereign function, printing of banknotes.
Production of indigenous banknote paper will help to
control counterfeiting and it is one of the major anticounterfeiting measure.
Usage of 100% Indian raw material will make our banknote
paper a unique sovereign product.
14. Economic benefit to the society due to usage of locally grown
raw material, Cotton.
Direct and indirect employment generation
Local area development through CSR activities
Big savings in foreign exchange, every year.
All the three lines are expected to manufacture 18000 MT of
banknote paper per annum on attaining its full capacity.
Present annual import cost for 18000 Ton of banknote paper
is about 165 Million Euro which is slightly higher than the
total cost of imported machinery for three lines of paper
production including that of SPM Hoshangabad to produce
18000 Ton of paper.
15. Indigenous production of banknote paper will also help to
increase the revenue for state and central Govt departments,
in the form of various taxes applicable for the procurement of
raw material and on the sale of product.
This project will provide lot of flexibility to banknote printing
presses owned by SPMCIL and BRBNMPL for the
procurement of banknote paper of different denominations as
per the required denomination mix and delivery schedule.
Indigenous paper production will also improve supply chain
efficiency and reduce the inventory cost of printing presses
and in turn reduce the cost of banknote printing.
Participating in the Nation building exercise - Big boost in
morale of the people.
16. India is the second 2nd largest consumer for banknote
paper in the world and the demand of currency is
increasing day by day. The annual requirement of the
banknote paper has increased from 13,500 MT in the
year 2007 to 25000 MT in the year 2013, almost 85%
increase during the last 6 years.
The statistics reveals that, our country will have to
increase the manufacturing capacity of banknote
paper immediately after establishing the new projects
to meet our own demand.
By establishing this project our engineers and
technicians will acquire the required knowledge and
master the skill to meet with all future challenges in
the field of banknote paper manufacture.
17. Indian banknote paper still uses security features developed
by other countries. This project will give an excellent
opening for all Indian R&D organizations like CSIR
Laboratories to develop new security features. The new
facility could become an implementation partner. If India
develop its own security features, the Country will be totally
self reliant with respect to the sovereign product.
If Govt. of India desires, there will be a situation of
readiness to meet bigger challenges for manufacturing
banknote paper for other countries also.
As the World’s best currency printing facility is already
available in India, with the indigenization of banknote
paper production, INDIA COULD BECOME A
CURRENCY HUB OF THE WORLD.