Note Ban: 20,000 Tonnes of Currency Paper to Be Imported Soon

The much-awaited trigger for making homes affordable for end users is here. The government’s decision to ban Rs 500 and Rs 1,000 currency notes is expected to hit the real estate sector hardest. (Photo: Reuters)

A tender is expected to be issued in a week for the import of currency papers from some foreign firms to meet the requirement of the country’s printing presses following demonetisation of Rs 500 and Rs 1,000 notes on 8 November.

The import order could be in the range of 20,000 tonnes, far higher than the approximately 8,000 tonnes imported over the current year, senior officials told The Indian Express following a Finance Ministry meeting.

Also Read: Security Scandal: New Rs 500 Note Is Vulnerable to Counterfeiting

It will be a huge import order, which will take care of our printing projection for a year and beyond. But it is not a record order since India relied entirely on imported currency paper in the past. Now, we manufacture most of our currency paper ourselves

Senior Official told The Indian Express

Also Read: Note Ban’s Cost? Rs 200 Cr in Defective New 500 Notes For a Start

The consumption of currency paper over the last few years had been in the range of 25,000 tonnes annually and around 18,000 tonnes are now manufactured by the presses in India.

Also Read: RBI Ensures Future Rs 50 Notes Will Be Poor on Quality, Security

Under normal printing conditions, the currency papers would have lasted until mid-2017. But the rapid rate of printing post demonetisation has prompted the decision to import.

It was also reported that several foreign firms expected the orders to be split among them so that the price of imports is rationalised.

Also Read: Note Ban: Weak Imported Security Threads In Rs 2,000 & 500 Notes

The order may be shared by around nine foreign firms who have obtained security clearance from the Home Ministry, senior officials said. They include Landquart from Switzerland, Komsco from South Korea; PWPW from Poland; Arjowiggins from France; Crane from Sweden; Goznak from Russia; PT Pura from Indonesia; Fabriano from Italy and Louisenthal from Germany.

(Source: The Indian Express)