Sirpur Paper Mills has taken up expansion of the captive power plant capacity at its paper mill at Sirpur Kaghaznagar in Adilabad district of Andhra Pradesh. The capacity of the CPP is being raised from the existing 22 MW to 32 MW. BHEL has been placed with the orders for supplying the critical equipment such as generators. The project, estimated to cost Rs.15 crore, is likely to be completed in fiscal 2003-04.

Meantime, the company completed the expansion of the paper mill. The installed capacity was enhanced from 61,550 tonnes to 83,550 tonnes. The company has set up new bleach plant, soda recovery boiler and brown stock washers to improve the quality of the pulp. The expanded paper mill commenced operations on 21 March 2002.

The paper mill expansion entailed an investment of Rs.60 crore which was funded through internal accruals of Rs.25 crore and term loans from financial institutions to the tune of Rs.35 crore.