In a move aimed at strengthening India’s capacity to produce secure and durable paper, the central government has cleared a major investment to modernise banknote and security paper manufacturing infrastructure.
The government has approved a ₹1,800 crore proposal to set up a new cylindrical mould watermark banknote (CWBN) line with an annual capacity of 6,000 tonnes. The high-security paper produced through this line will be used for printing currency notes, non-judicial stamp papers, and passports. The decision was approved by the Cabinet Committee on Economic Affairs on Wednesday.
The new CWBN line will replace 2 of the 3 existing production lines at the Security Paper Mill in Narmadapuram, Madhya Pradesh. These older lines have been in operation since the 1970s. Once the new line is installed, the facility’s total annual production capacity will rise to around 12,000 tonnes of high-security paper.
Officials said the upgrade is necessary to meet rising domestic demand. “The need was felt considering that the number of passports issued annually increased to over 14 million in 2024-25, and there is also more demand for stamp paper and sovereign security papers. There has also been an increase in the replacement of old banknotes. This will make us self-sufficient for decades,” an official said.
Apart from increasing output, the new line is expected to be more environment-friendly. According to officials, the machinery and associated process systems will reduce water consumption and improve overall efficiency compared to the existing setup.
For procuring the machinery required for the new CWBN line, the concerned agency will invite global tenders, ensuring access to advanced technology and international expertise.
The Security Paper Mill in Narmadapuram, earlier known as Hoshangabad, plays a critical role in India’s security printing ecosystem. It is a key unit under the Security Printing and Minting Corporation of India Limited, which supplies high-quality paper for Indian banknotes, non-judicial stamps, and passports.
The approval of this project is seen as a strategic step to ensure long-term self-reliance in the production of sensitive security papers, while also modernising ageing infrastructure to meet future demand.
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