In a major move to bolster India's self-reliance in producing essential security documents, the Union government has given its nod to a significant investment for upgrading a key manufacturing facility. The Cabinet Committee on Economic Affairs (CCEA) has approved a proposal worth Rs 1,800 crore to establish a new, state-of-the-art production line for high-security paper.
Boosting Capacity for Currency, Passports, and Stamps
The new Cylindrical Mould Watermark Banknote (CWBN) line will be installed at the Security Paper Mill (SPM) in Narmadapuram, Madhya Pradesh. This facility is a crucial unit of the Security Printing and Minting Corporation of India Limited (SPMCIL). Once operational, the new line will have an annual production capacity of 6,000 tonnes of specialised, durable paper. This paper is not used for ordinary purposes; it forms the very foundation of India's currency notes, non-judicial stamp papers, and the coveted blue passports.
Officials highlighted that the decision is driven by a substantial surge in demand. The number of passports issued annually has crossed 14 million (1.4 crore) in the 2024-25 period. Concurrently, there is growing demand for stamp papers and the need for regular replacement of old, worn-out banknotes. The new production line is seen as a strategic step to ensure the nation's self-sufficiency in these critical materials for decades to come.
Modernization and Environmental Benefits
The approved project is not just about increasing output; it represents a technological leap. The new line, which comprises advanced machinery and process systems, will replace two of the three existing production lines at the Narmadapuram mill. These older lines have been functioning since the 1970s. The modern setup promises to be more environment-friendly and efficient in water usage, aligning with sustainable industrial practices.
With the addition of this new line, the Security Paper Mill's total annual production capacity for high-security papers will double to an impressive about 12,000 tonnes. This enhanced capacity is expected to seamlessly meet the rising requirements of various government and security functions. For the procurement of the necessary machinery, the concerned agency will be floating global tenders, ensuring access to the best available technology worldwide.
A Step Towards Long-Term Self-Sufficiency
This investment underscores the government's focus on strengthening domestic manufacturing capabilities for items of national strategic importance. Producing high-security paper domestically at the SPM, Narmadapuram (formerly Hoshangabad), reduces dependency on imports and ensures tighter control over the quality and supply chain of materials used for currency and sovereign documents.
The move secures the backbone of India's financial and identity documentation systems. By modernizing the infrastructure and significantly ramping up capacity, the government is proactively addressing future demand, ensuring that the production of rupees, passports, and legal stamps keeps pace with the needs of a growing economy and an increasingly mobile population.
