According to a report, the government has approved a ₹1,800 crore proposal to set up a new CWBN line to manufacture high-security paper used for currency notes, passports, and non-judicial stamp papers. Cylindrical mold watermark banknotes are a special type of high-security paper.
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New Delhi. The government has taken a major decision to produce better and higher security banknotes, passports, and stamp paper. According to a TOI report, the government has approved a proposal worth Rs 1,800 crore to set up a new Cylindrical Mould Watermark Banknote (CWBN) line to produce high-security paper used for currency notes, passports, and non-judicial stamp papers.
This decision comes at a time when existing capacity is under pressure due to increased passport issuance and exchange of old notes, making security paper a vital input in India’s sovereign printing ecosystem.
What is a Cylindrical Mould Watermark Banknote?
Cylindrical Mould Watermark Banknote is a special type of high-security paper used to make banknotes, passports, and non-judicial stamp papers. This paper is produced using an advanced technology called the cylinder mould process, in which the watermark is etched into the paper itself.
The Cabinet Committee on Economic Affairs (CCEA) approved the proposal on Wednesday. The new CWBN line will have an annual capacity of 6,000 tonnes and will replace two of the three existing production lines at the Security Paper Mill (SPM) in Narmadapuram, which have been in operation since the 1970s. After the installation of the new line, the total annual capacity at SPM will increase to approximately 12,000 tonnes of high-security paper, doubling production.
This upgrade will directly meet the growing demand for issuing passports, stamp papers and government security documents, as well as the periodic replacement of banknotes in circulation. Officials said the new line, which includes modern machines and process systems, will be environmentally friendly and water-efficient.
“The need for this was felt because the number of passports issued annually is expected to increase to over 14 million (14 million) by 2024-25, and there is also a higher demand for stamp paper and sovereign security paper. There has also been an increase in the exchange of old notes. This will make us self-sufficient for decades,” an official said.
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