Officials from the finance ministry said that India might import 20,000 tonnes of currency paper from a few foreign firms to meet the requirement of the four security printing presses in the country following Prime Minister Narendra Modi’s move to demonetise currency notes of Rs 500 and 1,000 on November 8.
This decision was taken after a meeting of finance ministry officials chaired by Economic Affairs Secretary Shaktikanta Das on Saturday and the limited tender is expected to be issued next week. The import order is a lot higher than the evaluated 8,000 tonnes of currency paper imported in 2016, the Indian Express reported.
“It will be a huge import order, which will deal with 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,” a senior official told the daily.
As per authorities,18,000 tones of currency paper is now manufactured at the Reserve Bank of India (RBI) presses as opposed to the last few years when currency paper import would be in the range of 25,000 tones annually. In normal circumstances, there would be enough stock of currency paper till mid-2017. However, the move to demonetise high value currency notes led to the printing of replacement currency, due to which the decision to import currency paper was taken.
Principals of two foreign security paper producing firms are at present on a visit to India’s printing offices. The IE cited delegates of foreign firms as saying that the request is probably going to be partitioned among a few organizations to legitimize the cost of the imports.
As per authorities from the finance ministry and the Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), the request will be partitioned among nine outside firms cleared by the home ministry. The organizations incorporate 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, the IE reported.
Around six of these firms already supply currency paper to India, while the other three might be incorporated into the procedure interestingly.
The home service had, before, boycotted British firm De La Rue and German firm Louisenthal because of security concerns. While the German firm was as of late cleared, the British firm still remains boycotted. Swiss firm Sicpa, which gives specific coin paper inks to India, likewise as of late got a trusted status.
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