TNPL to invest Rs 300 cr for cement project

Tamil Nadu : Tamil Nadu Newsprint and Papers Limited (TNPL) plans to invest Rs 370 crore, which includes setting up of a cement plant. The state-run company had said as part of derisking its business the company is planning to diversify into cement and paperboard manufacturing. The company, which started as a manufacturer of newsprint have decided to stop production of newsprint.

The company also earmarked Rs 200 crore towards setting up tissue paper manufacturing facility.

“As newsprint prices are volatile and production of newsprint from virgin fibre is uneconomical, the company has stopped production of newsprint. With consistent economic growth and increasing literacy levels, the demand for printing and writing paper is estimated to grow at 8-9 per cent per annum," said N Sundaradevan, chairman, TNPL.