Cabinet approves ₹1,788 cr unit to boost high-security paper output

The Union Cabinet on Wednesday approved a ₹1,788 crore proposal to set up a cylindrical mould watermarked banknote paper production line at the Security Paper Mill (SPM) in Narmadapuram, Madhya Pradesh, sources said, strengthening domestic capacity for high-security paper used in currency notes, passports and stamp papers.

The new production line will have an annual capacity of 6,000 metric tonnes and replace two ageing production lines commissioned in the 1970s. Once operational, SPM's total paper-making capacity will rise to about 12,000 metric tonnes a year from the current 7,500 metric tonnes, while significantly modernising the facility, they said. Demand for security paper is rising in India. Requirement of banknote paper has grown 7-8% due to increased currency circulation and replacement of soiled notes, estimate officials. Currently, around 26 billion pieces of banknotes are printed annually by the Security Printing and Minting Corporation of India Ltd and its subsidiary, Bharatiya Reserve Bank Note Mudran Pvt Ltd. Beyond currency, cylindrical mould watermarked banknote paper is used in passports. India reportedly issues more than 12 million passports a year, making assured domestic availability of security paper a strategic priority.

Sources said the new production line is part of a broader effort to future-proof India's currency and security document ecosystem and ensure self-dependency in future as well. A global tender will be floated to procure advanced machinery, enabling the adoption of modern technology and international best practices.


Budget Session

The Cabinet Committee on Parliamentary Affairs has proposed the dates for the budget session. The first phase is likely to be from January 28 to February 13, while the second is scheduled from March 9 to April 2, sources said. The budget is set to be presented on February 1, which falls on a Sunday and coincides with Ravidas Jayanti.