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ITC's massive outlay on paper plant

Special Correspondent

A.P., Maharashtra and Gujarat possible sites for elemental chlorine-free unit

NEW DELHI: In a major initiative to boost production of Elemental Chlorine-Free (ECF) paper for food packaging, ITC on Tuesday announced its plan to invest Rs. 2,500 crore during the next two-three years in putting up a new plant, which will increase its paper and paperboard manufacturing capacity to 5.5 lakh tonnes.

"We are at the final stage of striking a land deal for this ECF project and looking at possible site in Andhra Pradesh, Gujarat and Maharashtra," Chief Executive of ITC's paper division, Pradeep Dhobale, told media persons during the launch of the sweetmeat range packed in ECF material here.

He said Bikanervala Foods Pvt. Ltd. with a large chain had become the first national sweetmeat brand to switch over to the environment-friendly packaging. Elaborating on ITC's plans, he said the final decision regarding the two-lakh tonnes ECF plant location would be taken in a month's time.

At present, ITC's paper division has four production units. It has 3.5 lakh tonnes total capacity, which includes one lakh tonnes for ECF paper materials. He ruled out any overseas expansion for capacity addition and said that the company was open to acquisition of capacities domestically.

Shyam Sunder Aggarwal, Managing Director of Bikanervala Foods, said this tie-up with ITC for packaging materials is a step forward towards achieving global quality standards.

In the interest of consumer safety, leading global food products and pharmaceutical companies strictly use only ECF packaging in the U.S. and EU markets and the Government wanted the country to be globally competitive, Subodh Kant Sahay, Union Minister of State (independent charge) for Food Processing, said.

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