New Delhi: The government has approved a Rs 1,800 crore proposal to set up a new cylindrical mold watermark banknote (CWBN) line with an annual capacity to produce 6,000 tonnes of high-security, durable paper, which is used for printing currency notes, non-judicial stamp paper and passports. This new line – one set of machines – will replace two of the three lines at Security Paper Mill, Narmadapuram in Madhya Pradesh, which have been in operation since the 1970s.

With the addition of the new line at SPM, the facility will have an annual capacity to produce approximately 12,000 tonnes of high-security paper. Officials said the new line – which includes machines and other process systems – will be environmentally friendly and save water. “The need was felt considering that the number of passports issued annually has increased to more than 14 million (1.

4 crore) in 2024-25 and there is also a higher demand for stamp papers and sovereign security papers. Replacement of old bank notes has also increased. This will make us self-reliant for decades,” an official said.

Unit of the Security Printing and Minting Corporation of India Limited (SPMCIL), which produces high quality paper for Indian banknotes, non-judicial stamps and passports.