Chennai, Aug 31 (IANS): The Tamil Nadu Newsprint and Papers Ltd (TNPL), the third largest paper mill in the country, is expected to complete its pulp production expansion and start production by the end of this year, the state Assembly was informed on Tuesday.

In a policy note tabled in the house, Industries Minister Thangam Thennarasu said that the TNPL, with a paper (printing and writing) and coated board capacity of 600,000 tpa, has taken up the Mill Expansion Plan in Unit II at Mondipatti village, Manaparai taluk, Tiruchirappalli district to be implemented in two phases at a capital outlay of Rs 2,520 crore.

Phase 1, which began in 2019, consists of 400 ton per day chemical hardwood pulp plant with required chemical recovery system, and 20 MW turbo generator at a capital outlay of Rs 1,100 crore.

Owing to the Covid-19 pandemic lockdown, the project got delayed.

"The commissioning activities are scheduled to commence from October 2021 and the pulp production is expected from December 2021," the government said.

Phase 2, consisting of installation of board machine and power plant at a capital outlay of Rs 1,420 crore, shall be taken up after completion of Phase 1 and financial closure.