Hindustan Paper Corporation, a Central PSU, has planned to set up a Rs 1,250 crore paper mill in Uttar Pradesh. The proposed mill will produce 3 lakh tonne per year of special grade creme woven paper. While preparatory work on the project is currently underway, the proposal would soon by submitted to the Union ministry of heavy industries, for approval.
HPC has also planned to invest Rs 500 crore in reviving its Tuli paper mill in Nagaland, which is lying non-operational from 1992.
Another plan costing Rs 650 crore is already underway. This plan includes capacity expansion at the Naogaon paper mill in Assam from 1 lakh tpa to 1.35 lakh tpa for writing and printing paper. Also part of the plan is the modernisation of the 1 lakh tpa Cachar paper mill in Assam and the 0.67 lakh tpa Nagaland paper mill.
HPC has targeted to achieve production level of 8 lakh tonnes of paper and newsprint by 2011. Along with its 100 per cent subsidiary, Hindustan Newsprint, HPC's total paper and newsprint production in 2005-06 stood at 3.2 lakh tonne.