Arun Jaitley opens facility for currency paper in Madhya Pradesh1 min read . Updated: 30 May 2015, 04:09 PM IST
Jaitley says the facility symbolises the beginning of the 'Make In India' initiative
Hoshangabad: Finance minister Arun Jaitley on Saturday inaugurated a new production line in Hoshangabad to manufacture currency paper, saying it symbolises the beginning of the ‘Make In India’ initiative and would ensure high-denomination notes are printed on locally-made paper.
Currently, currency notes of larger denominations are printed on imported paper though ink used is mostly produced within the country, the minister said.
Jaitley was inaugurating the New Bank Note Paper Line with an annual capacity of 6,000 tonnes at the Security Paper Mill (SPM). The minister also expressed happiness that the ‘Make In India’ programme was beginning in Madhya Pradesh, a state which has ceased to be bimaru (sick), following various initiatives taken by chief minister Shivraj Singh Chauhan in the recent past.
The Madhya Pradesh government has done well to promote agriculture and infrastructure and it should now focus on industry, he said, while promising to consider the demand of the state for more initiatives to encourage manufacturing activity.
Hoshangabad was chosen as the centre for producing paper for printing currency notes several decades ago by former PM Morarji Desai, when he was finance minister. However, it produced paper for printing currency notes of smaller denominations only, Jaitley said.
With the development of new facilities at Hoshangabad and also Mysore, it would be possible to produce currency printing paper in adequate quantity. The Bank Note Paper Line facility at Mysore will have a capacity of 12,000 tonnes and is expected to be commissioned by the year end.
A finance ministry statement read: “The combined savings of foreign exchange from these two Bank Note projects will be about Rs1,500 crore in coming years." This will also reduce the possibility of diversion of the paper supplied by foreign countries to other destinations for the purpose of generating fake currency, the ministry said. PTI