Tamil Nadu Newsprint and Papers Ltd will set up a Rs 1,200-crore packaging board manufacturing unit in Tiruchi District, announced the Chief Minister, J. Jayalalithaa, in the Assembly today.
The two-lakh-tonne-a-year unit will produce multi-layer double-coated board. It will come up on 989-acre land and generate over 2,000 jobs. Work on the unit will start in the current year in Srirangam Constitutency on the Kulithalai-Manaparai State Highway in Mondipatti village.
The unit will be ready in March 2016.
According to official sources, the project will be funded through internal accruals and term loans. No increase in equity base is envisaged, the sources said.
The unit will produce high-end, white liner boards for folding boxes. Packaging board as a segment in paper industry is among the fastest growing products. The unit with a single machine of two-lakh-tonne capacity will be the largest one in this segment in India.
TNPL is a listed company with a capacity to produce about four lt of printing and writing paper in its factory in Karur district. It recently started a 600-tonne-a-day cement plant using paper mill waste and fly ash as raw material.