CCEA Clears Rs 1800 Crore Project to Boost Currency Paper Capacity

Government of India has approved a Rs 1,800 crore proposal to set up a new Cylindrical Mould Watermark Banknote (CWBN) line to boost domestic production of high-security paper. This paper is used for printing currency notes, non-judicial stamp papers, and passports.

The decision aims to meet the rising demand for secure and durable paper in India.

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CCEA Clears Rs 1800 Crore Project to Boost Currency Paper Capacity

Approval by Cabinet Committee on Economic Affairs

The proposal was approved by the Cabinet Committee on Economic Affairs (CCEA). The new CWBN line will be installed at the Security Paper Mill, located in Narmadapuram.

This new production line will replace two old paper-making lines that have been in operation since the 1970s, modernising the facility.

Increased Production Capacity and Self-Reliance

• The new CWBN line will have an annual capacity of 6,000 tonnes
• After installation, the mill’s total capacity will rise to 12,000 tonnes per year
• The project will ensure long-term self-sufficiency in high-security paper production

Officials stated that the rising demand is due to:

• Increase in passport issuance to over 14 million (1.4 crore) annually in 2024-25
• Higher requirement of non-judicial stamp papers
• Replacement of old banknotes

Environment-Friendly Technology

The new CWBN line will use modern, eco-friendly machinery that:

• Reduces water consumption
• Improves efficiency and durability
• Enhances security features in paper production

Machinery for the project will be procured through global tenders, ensuring access to advanced technology.

Role of SPMCIL

The Security Paper Mill is a key unit under Security Printing and Minting Corporation of India Limited (SPMCIL).
SPMCIL plays a crucial role in producing:

• Banknote paper
• Passport paper
• Sovereign and non-judicial stamp papers

Exam-Oriented Key Facts

• Project cost: Rs 1,800 crore
• New facility: Cylindrical Mould Watermark Banknote (CWBN) line
• Location: Security Paper Mill, Narmadapuram, Madhya Pradesh
• Approved by: Cabinet Committee on Economic Affairs (CCEA)
• New capacity addition: 6,000 tonnes per year
• Total capacity after upgrade: 12,000 tonnes per year
• Implementing PSU: SPMCIL

Question & Answer

Q1. The Rs 1,800 crore CWBN line approved by the government is related to the production of which item?
(a) Defence equipment
(b) High-security paper
(c) Semiconductor chips
(d) Railway components
Answer: High-security paper

Q2. Which body approved the proposal for setting up the new CWBN line?
(a) Union Cabinet
(b) NITI Aayog
(c) Cabinet Committee on Economic Affairs
(d) Reserve Bank of India
Answer: Cabinet Committee on Economic Affairs

Q3. The new CWBN line will be installed at which location?
(a) Nashik
(b) Dewas
(c) Narmadapuram
(d) Hyderabad
Answer: Narmadapuram

Q4. After the installation of the new CWBN line, what will be the total annual production capacity of the Security Paper Mill?
(a) 6,000 tonnes
(b) 8,000 tonnes
(c) 10,000 tonnes
(d) 12,000 tonnes
Answer: 12,000 tonnes

Q5. Security Paper Mill, Narmadapuram functions under which organisation?
(a) Reserve Bank of India
(b) Ministry of Finance
(c) SPMCIL
(d) SEBI
Answer: SPMCIL

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