Bhopal, Jan 8 (IANS): The government is enhancing security features in notes to help curb counterfeit currency, Finance Minister Pranab Mukherjee said Saturday.
"The reforms related to security features will also ensure that the incidences of fake currency are reduced considerably," Mukherjee said while commissioning the new note printing line of Security Printing and Minting Corporation of India Limited (SPMCIL) at Dewas, 150 km from here.
"As a part of modernisation of currency printing presses, one line of currency printing machine at bank note press, Dewas is being commissioned today. For this line, machines worth over Rs.233 crore have been purchased," he added.
According to Mukherjee, steps have been initiated to boost the production of indigenous ink used for printing notes to enhance security features.
"I have been informed that steps to enhance the production of indigenous ink for security printing has been taken up through the modernisation and expansion of the ink factory at the Bank Note Press (BNP), Dewas," Mukherjee said.
The finance minister added that a high level committee comprising of officials from various ministries and security agencies has been constituted under Director General of Directorate of Currency Bimal Julka for acquiring of security features through global competitive bidding.
"This acquisition of new security features is being done in an efficient and transparent manner. I am hopeful that with the upgradation of security features, the government will be able to check the menace of fake currency circulation in the country," he said.
Mukherjee further said that an adequate inflow of investments is required to modernise the indigenous capacity for printing and minting of currency and coins.
"I am told that SPMCIL has an investment plan of about Rs.2,500 crore covering the period 2009 to 2014. This is likely to give a big boost to the indigenisation efforts of the security products used in the creation of currency," the minister said.
Mukherjee added that the enforcement of the Coinage Act 2011 provides the central government powers to establish new mints at any place based on the rising demand of coins.
"It (Coinage Act) also provides for stringent punishment with imprisonment which may extend up to seven years and a fine if a person is found to be making or melting or destroying the coins," he said.
He said that the capacity of producing banknote papers at present is 21,000 tonnes.