Presentation of spmcil indigenization of banknote paper production

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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.



The state of art machinery with highly advanced

technology will be a new milestone in the history of

Indian currency.

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

SPM, Hoshangabad.

This presentation is about Green Field Project,

Bank Note Paper Mill India Private Limited

(BNPM).



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.



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.



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.



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

quality control.



Implementing automatic material handling system.

- The automatic raw material feeding from raw

material 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

entire plant.



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

supplier.

Making a world class R&D Laboratory for future

innovations.



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.



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.



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

system.

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.



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 anti-

counterfeiting measure.

Usage of 100% Indian raw material will make our banknote

paper a unique sovereign product.



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.



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.



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.



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.




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Presentation of spmcil indigenization of banknote paper production