Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

Post note ban, expansion of currency presses, paper mills

Author: IANS/Monday, August 7, 2017/Categories: Currency

Post note ban, expansion of currency presses, paper mills

By Meghna Mittal

New Delhi - With the sudden demonetisation decision exposing its chinks, the country's currency printing system is undergoing a complete overhaul, officials say.

The system's capabilities were put to the severest test during last year's demonetisation, with millions of people standing in queues for long to get their quota of currency because the supply of new notes was slow in coming. The government is now focussing on the expansion, indigenisation and upgradation of currency presses and paper mills, a top official said.

Burdened by the outdated technology of the printing presses and limited paper mill capabilities, the currency note printing system lagged way behind the demand long after the demonetisation process, announced last November, had concluded. 

As a spillover, the government is now working towards strengthening the country's currency printing system, the official, who did not want to be identified, said.

While new note printing lines will be added at the Nashik and Dewas printing presses by 2018-end, the paper mills will also get two additional lines to help India head towards self-sufficiency and indigenisation.

"We are going to have new lines. We are planning upgradation of both Nashik and Dewas printing presses. It's a two-year process; so it will happen by the end of 2018," a top government official said, not wishing to be identified. 

"It is under process right now. To update the printing machinery, the process is on for global tendering for upgradation of facilities. The process of printing notes will be through more efficient technology in the new lines. It will be able to take 1,000-2,000 extra sheets at a time. The machine capacity currently is 8,000 sheets per hour," he said.

India has four currency note printing pressess -- two RBI presses in Mysuru (Karnataka) and Salboni (West Bengal) and two Security Printing and Minting Corp of India Ltd (SMPCIL) presses in Nashik (Maharashtra) and Dewas (Madhya Pradesh). SPMCIL is a government-owned company formed in 2006 that fulfils a sovereign function of printing notes, minting coins and printing non-judicial stamp paper.

The capacity of the Nashik and Dewas presses is 600 million pieces a month. The present capacity of the presses in Mysuru and Salboni is 16 billion note pieces per year on a two-shift basis.

During demonetisation, while the paper of the Rs 2,000 note was made indigenously, the paper manufactured for Rs 500 in India could not cater to the huge demand and vacuum created due to the sudden note ban.

On November 8, there were 17,165 million pieces of Rs 500 notes and 6,858 million pieces of Rs 1,000 notes in circulation. They amounted to a total of Rs 15.44 lakh crore in value or 86% of the total currency in circulation.

"In our mill, we had the first indigenously made paper for the new Rs 500 note. Production of Rs 500 notes at Nashik and Dewas presses used in-house ink as well. But there is a shortfall," the official noted.

The ink used for Rs 500 notes is imported as well as made in Dewas.

The paper mill at Hoshangabad is owned by SPMCIL while the one at Mysuru is a joint venture between SPMCIL and Bharatiya Reserve Bank Note Mudran Private Limited, a wholly owned subsidiary of Reserve Bank of India (RBI).

"The Cylinder mould vat mode Watermarked Bank Note (CWBN) paper for the Rs 500 note, developed in Hoshangabad, was also imported. Hoshangabad has two units of 6,000 metric tonnes per annum capacity. So it has a total capacity of 12,000 metric tonnes per annum. Mysuru paper mill also has 12,000 metric tonnes annual capacity," another top official said.

"Two more lines of a total capacity of 12,000 metric tonnes are being added at Hoshangabad paper mill. Work is on. Tenders are being invited to set up paper mills here under the Make in India programme. So the production capacity at Hoshangabad will double," he said.

For the new lines of paper mill, however, there is a gestation period of 4-5 years, including the tendering process which will take a year.

"The process is on. The dependability on import of paper will greatly reduce thereon," the official said.


 

 

Print Rate this article:
No rating

Number of views (308)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free