Seshasayee Paper and Boards Ltd is reassessing its investment strategy for expanding pulp and paper capacity as part of the Mill Development Plan IV program, prompted by feedback from the Expert Appraisal Committee of the Union Ministry of Environment, Forest & Climate Change regarding its environmental clearance application for the expansion project.

Initially aiming for a 40% increase in paper and pulp capacity at its Pallipalayam manufacturing unit in Erode, Tamil Nadu, the company submitted applications for environmental clearances for the expansion.

However, subsequent feedback from the Environment Ministry has led the company's Board to approve a phased approach under the Mill Development Plan – IV program.

The first phase will involve a 20% expansion, with a fresh application for environmental clearances to be submitted.

Subsequent expansion up to 40% will follow the successful completion of Phase-I. The company had sought exemption from fresh public consultations for this subsequent expansion, as mentioned in its FY24 annual report.

Pending a detailed review of the techno-economic feasibility report, the Board is expected to grant final approval for the revised scope, timelines, and costs for various phases of the project. This approval is subject to obtaining requisite approvals from concerned authorities for the revised Phase-I expansion by 20%.