JK Paper plans a Rs 1,500 crore expansion project of the unit located at Jaykaypur in Orissa's Rayagada district. The construction work for the project is likely to start in the October and is scheduled to be completed by mid-2012.
The capacity of the paper mill would be raised from 1.25 lakh tonne to 1.50 lakh tonne per annum, while the capacity of the pulp mill would be doubled to two lakh tonne. Similarly the 35 MW captive power plant of unit will be completely replaced with a new captive power plant (CPP) of 55 MW. The company proposes to fund the expansion project through a mix of debt and equity.
The JK Paper Mills, a unit of JK Group, has its central pulp mill at Sangadh in Gujarat.