ITC will pump Rs 2k cr into Bhadrachalam unit in '25
Bhadrachalam: The diversified multinational conglomerate Ltd has developed plans to invest Rs 2,500 million in its PSPD (division of special papers and papers) business as part of plans to increase capacity to 1 million tons per year (mtpa) by 2025.
A part of this investment, Rs 2,000 crore, will be pumped to its integrated pulp and paper manufacturing facilities in Bhadrachalam, Telangana. ITC Bhadrachalam, which extends over 500 acres and is promoted as the largest pulp and paper production site in India, acquires 15 lakh tpa of wood pulp from almost 8,000 farmers in the two states of Telugu and has created more than 1,800 direct and 3,000 indirect jobs. .
“Currently, our total PSPD capacity is 7.5 lakh tons per year, of which 6.5 lakh tpa is only found in Bhadrachalam. As part of our plan to reach 1 mtpa in the next 5 years, Bhadrachalam's capacity will increase to more than 8 lakh tpa, Vadiraj Kulkarni, director of operations of PSPD, ITC Ltd., told TOI.
Noting that ITC has already invested 1.250 crore in its PSPD business in the last three years, Kulkarni said 1.5 billion rupees will be injected into Bhadrachalam at the end of 2021-22.
“The investment of Rs 1,250 million rupees was allocated to the creation of a bleached chemo-thermomechanical pulp factory (BCTMP) of 1 lakh tpa, which contributes to import substitution and captures a greater value in India, and a new line of cardboard machines with a production capacity of 1.5 lakh tpa in Bhadrachalam.
The continuous investment of 1.5 billion rupees is being used to establish a high pressure recovery boiler, expand the capacity of the pulp mill to 4 lakh tpa of 3.5 lakh tpa and increase the production capacity of 1 lakh cardboard machines tpa to 1.5 lakh tpa in Bhadrachalam, Kulkarni explained.
He said another Rs.1 billion will be invested over the next five years to expand the capacity of the pulp mill in Bhadrachalam to 4.75 lakh tpa in Rs 500 million. Another 500 rupee crore will be pumped to the Kovai (Coimbatore) facilities to add a 1.5 lakh tpa paperboard machine to improve the plant's capacity to 2.5 lakh tpa. We will take the necessary approvals for this Rs 1,000 million rupee investment plan in due course, said ITC-PSPD Director of Operations.
He said that investments in the PSPD business are aimed at boosting the growth and competitiveness of the business through an indigenous sustainable paper value chain anchored in an afforestation program that has traveled more than 7.5 lakh acres across the country.