Tamil Nadu Newsprint & Papers Ltd (TNPL) is set to invest over Rs 600 crore in capital expenditure over FY2025 and FY2026 to undertake key expansion and modernisation projects.

The investment plan has been outlined in reports by rating agencies, which have reaffirmed the company’s credit ratings.

TNPL has deferred its phase 2 expansion plans for its print and writing paper (PWP)/board segment but remains committed to growth in other areas.

The company will allocate Rs 600-650 crore towards setting up a tissue paper plant, upgrading power plants, and regular maintenance activities. This expenditure will be partly funded through ₹240 crore in debt, as noted by rating agency ICRA.

In response to increasing demand in the tissue paper market, TNPL plans to establish a cutting-edge tissue paper machine with a daily capacity of 100 tonnes at its Unit-II facility.

The project, with an estimated cost of Rs 340 crore, is slated for completion by March 2026. Of this, Rs 270 crore will be financed through debt, with the remainder coming from internal accruals.

These initiatives reflect TNPL’s focus on diversification and sustainability while enhancing operational efficiency and meeting growing market demands.