Soon after its decision to scrap the old series ₹500 and ₹1,000 currency notes, the government now seems to be taking steps to mint more small-denomination currency in the form of coins of ₹1, ₹2, ₹5 and ₹10.
The Mumbai-headquartered India Government Mint has floated an international tender for procuring 32 high-speed mechanical coin presses.
These will be deployed at government mints at Mumbai, Hyderabad, Kolkata and Noida, which are run by the Security Printing and Minting Corporation of India Ltd.
According to the tender, each mint will receive eight coin-pressing machines. It further said the machines should be suitable for “continuous operation to its full capacity for 24 hours a day and seven days a week”.
While officials remained tight-lipped over the tender, sources indicated that this could be a part of the government’s decision to introduce new denomination notes of ₹500 and ₹2,000.
“Partly, this is an ongoing process of printing more currency to replace existing coins and notes. The idea is also that eventually, fresh series of all denomination notes and coins will be introduced,” said a source.
Further, the new coins will also ensure sufficient supply of small-denomination currency in the market and will especially take care of requirements of the rural areas.
Sources however, indicated that minting of the new coins would be a long drawn process and production using the new machines would start not before the end of next year.
Three-stage processThe last date for submission of bids is January 14, 2017. This would be followed by a three-stage process, including opening of pre-qualifying bid, techno-commercial bid and financial bid.
According to the tender, at least half of the machines should be provided by the selected company within eight months of the letter of intent and the remaining of the machines within the next six months.
Data with the Reserve Bank of India shows that the number of coins (of denominations of ₹1, ₹2, ₹5 and ₹10) in circulation has been steadily increasing. The total value of the coins in circulation in 2015 was ₹20,852 crore as against₹18,400 crore in 2014.