IN view of the country's rapidly growing per capita consumption of paper, its demand is estimated to grow to 94.35 lakh tonnes by 2015 from the present 55 lakh tonnes, said Mr K.S. Kasi Vishwanathan, President, Indian Pulp and Paper Technical Association.

Quoting figures from the Finland-based consultants Jaako Poyry, he said this additional capacity generation would need an investment of nearly Rs 40,000-50,000 crore .

"If we do not take steps for establishing paper mills to meet this future additional demand, we have to necessarily import paper and the additional foreign exchange outgo will be around Rs 10,000 crore per year," he said at a press meet.

In the last 20 years, no greenfield paper has been set up in the country.

The last greenfield integrated mill was that of Tamil Nadu Newsprint and Papers Ltd that came up in early 80s, he added.

Mr Vishwanathan, who was here to attend a two-day national workshop on leveraging IT process automation in pulp and paper industry, said the industry needs about 12 lakh to 15 lakh hectares, which is about four-five per cent of the degraded forest land in the country for cultivation.

The Association has approached the Government to permit the industry for allotment of land on long-term lease as the industrial plantation policy did not allow industrial plantation by private sector on degraded forestlands.

This will generate rural employment, improve the green cover and also save foreign exchange.

If raw material availability is ensured, the paper industry will attract huge foreign investments. The industry, he said, today is concentrating on encouraging farmers to grow trees such as eucalyptus and casuarinas in small pieces of land and assures a definite market and a minimum price.

Mr Vishwanathan, who is the Director (Operations) of Seshasayee Paper and Boards Ltd, pointed out that Indonesia, Brazil and China have progressed in a big way by establishing an effective industrial plantation policy and leveraged it to become major global players.