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Seshasayee Paper to prepare revised investment plan for expansion

Wednesday, 15 May 2024
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Seshasayee Paper and Boards is working to revise its investment plan for expanding pulp and paper capacity under the Mill Development Plan-IV programme. The decision comes following feedback received from the expert appraisal committee of the Union Ministry of Environment, Forest & Climate Change (MoEFCC) on its environment clearance (EC) application for its expansion project

The company had originally planned to increase the paper and pulp capacity by 40 percent at Pallipalayam manufacturing unit in Tamil Nadu and applied for EC for the expansion. After reviewing the feedback from the Environment Ministry, the company’s board has now approved the execution of the expansion in multiple phases.

The first phase will involve a 20 percent expansion, and a fresh application for environmental clearances is to be submitted. The expansion of up to 40 percent will be undertaken on successful completion of Phase-I, as the company had sought exemption from fresh public consultations, as per its FY24 annual report. The Board is expected to grant final approval for the revised scope, timelines and costs for various phases of the project post a detailed review of the techno-economic feasibility report. This is subject to obtaining requisite approvals from the concerned authorities for the revised Phase-I expansion by 20 percent.

The Rs 1,802 crore company currently operates an integrated pulp, paper and paper board mill at Pallipalayam and a paper manufacturing mill at Tirunelveli. Its total installed capacity stands at 2,55,000 tpa, with the Erode facility at 1,65,000 tpa and the Tirunelveli unit at 90,000 tpa. The Erode facility is already running at full capacity, with a capacity utilisation of 100 percent in FY24, while the Tirunelveli facility’s utilisation was about 84 percent.

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