united nations industrial development organization … · the indian paper industry accounts for...

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UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION

PROJECT DOCUMENT

Project number: 150282

Project title: Development and adoption of appropriate technologies for enhancing productivity in the paper and pulp sector

Relationship to integrated programme

N/A

Thematic area code EC1 Poverty Reduction

EC12 Business, Investment, Technology

Starting date: 15 October 2015

Duration: 21 months

Project site: Republic of India

Government Co-ordinating agency:

Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry, Government of India (GoI)

Counterpart:

Central Pulp and Paper Research Institute (CPPRI)

Indian Paper Manufacturers Association (IPMA)

Indian Agro and Recycled Paper Mills Association (IARPMA)

Indian Newsprint Manufacturers Association. (INMA)

India Recycled Paper Mills Association, (IRMPA)

Executing agency/ cooperating agency:

UNIDO

Project Inputs:

- UNIDO inputs:

- Project support costs (13%):

189,150 USD

- Counterpart inputs: 1,455,000 USD

- Grand Total: 1,644,150 USD

Brief description: India has demand drivers that are cause for a very positive outlook in the paper and pulp industry. These include greater than on average 7% annual GDP growth, increasing literacy, growing consumerism and optimism and a will to expand by industry leaders. India is the fastest growing paper and pulp market in the world, with on average 6% demand growth per annum. The Indian paper industry accounts for about 2.6% of the world's production of paper. The estimated turnover of the industry is INR 50,000 crore (9,259 Million USD) approximately and its contribution to the exchequer is around INR 4500 crore (833 Million USD). The industry provides employment to more than 0.5 million people directly and 1.5 million people indirectly. Most of the paper mills have been in existence for a long time and present technologies fall in a wide spectrum ranging from oldest to the most modern. In the past two decades, a widening gap between supply and demand has developed, with the former significantly falling short of the latter. An important reason for insufficient supply is due to firms’ inadequate productivity performance, which in turn is related to employment of relatively unsophisticated technologies, untrained staff, inadequate management practices, weak handling of

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waste emissions as well as suboptimal resource efficiency. The objective of this project is to introduce new and more advanced technologies, provide up-to-date skills to staff and transfer the most knowledge in the above mentioned areas. Firms’ successful enhancement of their productivity performance will bring the additional advantage of improved international competiveness, which will allow firms to enter export markets. There is thus significant growth potential to be seized by the industry, both domestically and internationally. The target beneficiaries include both select firms, which serve as demonstration units, and technical institutions such as the Indian Paper Manufacturers Association (IPMA) and the Central Paper and Pulp Research Institute (CPPRI), the Indian Agro and Recycled Paper Mills Association (IARPMA), the Indian Newsprint Manufacturer's Association (INMA) as well as the Indian Recycled Paper Mills Association (IRPMA). In the longer term, it is the bolstering of such institutions that allow for sustainability of the project activities and self-sufficiency of the sector. Project activities, where necessary, will be carried out in consultation and collaboration with UNIDO’s environment (ENV) branch. The project has been formulated in line with the direct request from and consultation with the Department of Industrial Policy and Promotion (DIPP), Government of India (GoI), as well as relevant industry associations. The project will be implemented in collaboration with the International Centre for Inclusive and Sustainable Industrial Development (IC-ISID) in New Delhi, India.

Approved: Signature: Date: Name and title: On behalf of: ……………. ___________________ __________ ____________________ On behalf of UNIDO: ___________________ __________ ___________________

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A. Table of Contents

A. CONTEXT ..................................................................................................................... 4

A.1. PROJECT ORIGIN .................................................................................................... 4

A.2. BACKGROUND ......................................................................................................... 4

A.3. TARGET BENEFICIARIES ........................................................................................ 7

A.4. COUNTRY LEVEL COHERENCE ............................................................................. 7

B. REASONS FOR UNIDO ASSISTANCE ........................................................................ 8

C. THE PROJECT ............................................................................................................. 9

C.1. Objective of the project .............................................................................................. 9

C.2. The UNIDO approach ................................................................................................ 9

C.3. RBM code and thematic area code .......................................................................... 11

C.4. Expected outcomes ................................................................................................. 12

C.5. Outputs and activities .............................................................................................. 12

C.6. Timeline of the activities........................................................................................... 14

C.7. Risks........................................................................................................................ 17

D. INPUTS ....................................................................................................................... 17

D.1. Counterpart inputs .................................................................................................. 17

D.2. UNIDO inputs ......................................................................................................... 18

E. BUDGET ..................................................................................................................... 20

F. CO-ORDINATION, MONITORING, REPORTING AND EVALUATION ........................ 21

G. PRIOR OBLIGATIONS AND PREREQUISITES .......................................................... 23

H. LEGAL CONTEXT ....................................................................................................... 23

Annex 1 – LETTER OF REQUEST FOR URGENT SUBMISSION OF PROJECT DOCUMENT ....................................................................................................................... 24

Annex 2 – PARTNERS OF PROGRAMME IMPLEMENTATION ......................................... 25

Annex 4 – LIST OF FIRMS AND INSTITUTIONS ............................................................... 28

Annex 5 – SWOT ANALYSIS OF PAPER MANUFACTURING SECTOR ........................... 30

Annex 6 – SPECIFIC ISSUES FACED BY THE PAPER AND PULP SECTOR................... 31

Annex 7 – DETAILS OF STUDY TOURS ............................................................................ 32

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A. CONTEXT

A.1. PROJECT ORIGIN

The project has been developed in response to a request from the Government of India (GoI), dated 18

th July 2015 (see Annex 1).

A.2. BACKGROUND

The Indian paper industry accounts for about 2% of the world's production of paper (Figure 1). The estimated turnover of the industry is INR 50,000 crore (9,259 Million USD) crore approximately and its contribution to the exchequer is around INR 4500 crore (833 Million USD). The industry provides employment to more than 0.5 million people directly and 1.5 million people indirectly. Most of the paper mills have been in existence for a long time and hence present technologies employed fall in a wide spectrum ranging from oldest to the most modern. Figure 1: World’s leading producers of paper and paperboard in 2009

Source: FAO Forestry Department FAOSTAT-ForesSTAT, (2011) With regard to the structure and size of the Indian paper industry, out of 759 the majority mills fall into the category of small and medium-sized enterprises (SME) based on agro residue and recycled waste paper. There are merely 20 large mills based on woody raw materials (Eucalyptus, Casuarina, Subabul). All in all, the SME mills contribute almost 8.97 million tons of production, whereas the large mills contribute 4.03 million tons of production. The mills are scattered throughout the country with major clusters located in the states of Gujarat and Maharashtra (Western part), Uttar Pradesh and Uttarakhand (Northern part) and Tamil Nadu and Andhra Pradesh (Southern part). The distribution of mills throughout India can be seen in Table 1 below.

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Table 1: The regional distribution of the paper mills in India Source: CPPRI (2015)

State Total number of mills

Gujarat 130

Uttar Pradesh 115

Maharashtra 112

Punjab 75

Tamil Nadu 88

AP 52

Karnataka 29

Madhya Pradesh 26

West Bengal 29

Haryana 17

Kerala 18

Uttrakhand 23

Chhattisgarh 10

Himachal Pradesh 9

Rajasthan 8

Orissa 7

Bihar 4

Assam 3

Jharkhand 2

Jammu & Kashmir 1

Total 759

Source: CPPRI (2015) The mills use a variety of raw material, for example wood, bamboo, recycled fibre, bagasse, wheat straw, rice husks, etc. Approximately 31% of production is based on chemical pulp, 47% on recycled fibre and 22% on agro-residues. The geographical spread of the industry as well as market is mainly responsible for regional production and consumption. The operating capacity of the industry currently stands at 12.75 million tons. During 2013-14, domestic production is estimated to be 11.38 million tons. As per industry estimates, over all paper consumption has now touched 13.10 million tons and per capita consumption is pegged at 10 kg. So far, the growth in paper industry has mirrored the growth in GDP. India is the fastest growing market for paper globally and it presents an exciting scenario; paper consumption is poised for a big leap forward in sync with the economic growth and is estimated to touch 14.6 million tons by 2015-16 (See Figure 2). The futuristic view is that growth in paper consumption would be in multiples of GDP and hence an increase in consumption by one kg per capita would lead to an increase in demand of 1 million tons.

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1 Indian Paper Manufacturers Association, 2015, http://ipma.co.in/paper_industry_overview.asp

http://ipma.co.in/paper_industry_overview.asp

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Figure 2: Paper production and consumption in India

Source: Pöyry Forestry Consulting, (2010) To meet the increasing gap between demand and supply, firms need to increase their productivity and resource efficiency by introducing new and more advanced technologies as well as through skills development. If successful, this will bring the additional advantage of enhanced international competiveness, which will allow firms to enter export markets. There is thus significant growth potential to be seized by the industry. Despite the fact that the Indian paper industry holds its importance to the national economy unfortunately it stands fragmented. The paper sector is dominated by small and medium-sized units. The number of mills with a capacity of 50,000 tons per annum or more is not more than 25. Less than half a dozen mills account for almost 90% production of newsprint in the country. There is a growing need to modernise the Indian mills, improve productivity and build new capacities.

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From the perspective of the global market, the top ten exporting countries of paper and paper board are Germany, the United States, Sweden, Finland, Canada, China, France, Austria, Indonesia and Italy. India does not register in this ranking (See Figure 3). Figure 3: World’s leading exporters of paper and paperboard in 2009

Source: FAO Forestry Department FAOSTAT-ForesSTAT, (2011)

2 Indian Paper Manufacturers Association, 2015, http://ipma.co.in/growth_pangs.asp.

http://ipma.co.in/growth_pangs.asp

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Figure 3 outlines the need for Indian firms in the paper and pulp sector to increase their productivity and competitiveness, hence enabling them to meet domestic demand, as well as looking outwards to global markets. In order to realise this goal it is imperative that the capacity and capability of technical institutions such as the Indian Paper Manufacturers Association (IPMA), the Central Paper and Pulp Research Institute (CPPRI), the Indian Agro and Recycled Paper Mills Association (IARPMA), the Indian Newsprint Manufacturer's Association (INMA) and the Indian Recycled Paper Mills Association (IRPMA) are bolstered. With this in mind this project aims to increase the technical capacity and capability of IPMA, CPPRI, IARPMA, INMA and IRPMA so that it can better support the Indian paper and pulp sector and increase its global competitiveness.

A.3. TARGET BENEFICIARIES

The project will benefit the following stakeholders:

Institution/body Result

Central Pulp & Paper Research Institute (CPPRI) Better able to technically assist the Indian paper and pulp sector.

Indian Paper Manufacturers Association (IPMA) Better able to technically assist the Indian paper and pulp sector.

Indian Agro and Recycled Paper Mills Association (IARPMA)

Better able to technically assist the Indian paper and pulp sector.

Indian Newsprint Manufacturers Association. (INMA)

Better able to technically assist the Indian paper and pulp sector.

India Recycled Paper Mills Association (IRMPA) Better able to technically assist the Indian paper and pulp sector.

Clusters and units Enhanced productivity and competitiveness

A.4. COUNTRY LEVEL COHERENCE

The project is in line with the GoI’s National Manufacturing Policy (2011) which states that: “Technology development and upgradation is critical to attaining the stated objectives of the Policy. Going up the technology ladder is the quickest way to become globally competitive and ensure sustained growth of the manufacturing sector. This will depend not just on development of indigenous technological expertise, but also on the ability to make crucial technology acquisitions in the global market. In today‘s world, green technology is not a choice but an imperative for sustainable development. Availability of affordable technologies has always been a constraint on our manufacturing growth.” (p.12) “The Central Government through its institutions and schemes will provide institutional infrastructure for productivity, quality (testing facilities etc.) and design capabilities, encouraging innovation and skill development within the NIMZ

3.” (p.28)

“ […] the growth of the manufacturing sector has to be made sustainable, particularly ensuring environmental sustainability through green technologies, energy efficiency, and optimal utilization of natural resources and restoration of damaged / degraded eco-systems.” (p.3) One of the primary objectives of the National Manufacturing Policy is to increase manufacturing sector growth to 12-14% over the medium term to make it the engine of growth for the economy. The 2 to 4 % differential over the medium term growth rate of the overall economy will enable manufacturing to contribute at least 25% of the National GDP by 2022. It aims to do this through:

i. Foreign investments and technologies will be welcomed while leveraging the country's expanding market for manufactured goods to induce the building of more manufacturing capabilities and technologies within the country;

3 National Investment and Manufacturing Zones

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ii. Competitiveness of enterprises in the country will be the guiding principle in the design and implementation of policies and programmes;

iii. Compliance burden on industry arising out of procedural and regulatory formalities will be reduced through rationalisation of business regulations;

iv. Innovation will be encouraged for augmenting productivity, quality, and growth of enterprises; and

v. Effective consultative mechanism with all stake holders will be instituted to ensure mid-course corrections.

“In addition, it is recognised that in today‘s world, green technology is not a choice but an imperative for sustainable development. Availability of affordable technologies has always been a constraint on our manufacturing growth.” (p.12). In specific reference to the management of solid waste, the 1986 Environment Protection Act (EPA) has framed rules under its provisions, for managing and handling municipal solid waste, biomedical waste and hazardous waste, etc. With regards to energy efficiency, a scheme Perform Achieve and Trade (PAT) has been launched by the Ministry of Power to achieve the energy efficiency in the paper and pulp sector. In first phase of the PAT cycle (2012-15) 31 large paper and pulp mills have been signed target to reduce their energy consumption. The monitoring and verification phase of the PAT scheme is in progress. Furthermore, the Ministry of Environment, Forests and Climate Change (MEFCC) has introduced the Charter for Water Recycling and Pollution Prevention in Paper and Industries in the Ganges River Basin. The objective of the charter is to reduce fresh water consumption, waste water discharge and overall pollution load through reuse and recycling of treated waste water, thus reducing the overall environmental impact and improving river water quality and conserving ground water. The charter has enforced stringent discharge norms, which are difficult to achieve with existing technological status and effluent treatment systems without technological intervention and expertise. As such, assistance/ expertise is required to assist the Indian paper and pulp mills in achieving the norms and help in sustainability of the industry

B. REASONS FOR UNIDO ASSISTANCE UNIDO, alone among the UN family of agencies and organisations specialised in industrial affairs, has been working with governments, business associations and individual companies to solve industrial problems. In many fields, it has rightly earned a reputation as a neutral and honest broker, playing a vital role in building up cooperation and coordination. Its services are customised and have been designed to be easily integrated into packages that will address specific country needs. At the same time, well-forged links with industrial associations, academic and research institutions, non-governmental organisations and other international agencies ensure that time and resources are not wasted by duplicating services. In the area of technology, UNIDO is transferring its rich global experience in building up awareness about new technologies and innovations and providing the countries with access to technology sources and relevant technical support services to manage technological change for enhanced productivity and competitiveness of local manufacturing industry. Its assistance also aims at strengthening technological capability and technology transfer mechanisms for further sustainable development, advising on ways and means to manage technological change, providing support to networking arrangements, fostering international cooperation and formulating national policy to provide these processes in line with the notion of inclusive and sustainable industrial development. UNIDO’s focus on Inclusive and Sustainable Industrial Development (ISID) implies that equal opportunity be given to women and men, thus catering to increased contribution from woman entrepreneurs to manufacturing productivity and excellence, and thus to overall economic performance of India. While implementing the projects/programmes, UNIDO also makes available its tools, methodologies, manuals, guidelines and training kits, which allow the counterparts to apply the best international practices in different areas of technology promotion and transfer. This enables UNIDO to manage

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technological change in conditions of a rapidly changing global economic environment and fast technological pace. In addition, UNIDO also uses the services of its other International Technology Centres (ITCs), Investment and Technology Promotion Offices (ITPOs) and established UNIDO’s ISID Centre in India as a new global mechanism for building up partnerships with other institutions and enterprises in both public and private sectors worldwide.

C. THE PROJECT

C.1. Objective of the project

To strengthen the global competitive position of the Indian paper and pulp sector.

C.2. The UNIDO approach

The UNIDO approach can be broken down into three phases: the inception phase, the implementation phase and the post implementation phase, each of which are described below. Inception phase The inception phase is characteristically a phase for planning and logistics with the aim of ensuring that all key stakeholders are on board and that planned activities are in line with the expected goal. The first output is aimed at priming the target recipients of the project intervention as to what services are on offer in terms of boosting their productivity and competitiveness. This is of great importance as often when trying to implement a change, no matter how small, we could encounter some resistance and this may have a negative impact on project sustainability. This is the case as there is often lock-in and there are often opportunity costs associated with any given change. In order to try and circumvent this, a process of sensitisation and selection is undertaken. When possible, sex-disaggregated data will be collected. The second output in the inception phase is undertaking analysis and drafting a report of the paper and pulp sector to develop an accurate baseline scenario. Third in the inception phase is a diagnostic study. This is necessary for two reasons. Firstly, in order to assess the gaps in technology, quality, productivity and product amongst the selected units. And secondly, in order to gain an in depth understanding of competition and global best practices. A common methodology will be developed to capture and compare performance evaluation parameters and maintain consistency in the delivery of the programme. Sex-disaggregated data will be collected in order to assess possible gender issues.

At the national level the diagnostic study methodology will require national consultants to examine key drivers affecting the competitiveness of the companies. Detailed site visits and questionnaires will be undertaken to identify weaknesses in product and processes. It is envisaged that discussions will be held with owners to obtain their evaluation of the prevailing situation in the business. The gap assessments will also examine the units’ technology level, skill and knowledge of their key employees by sex, systems and manufacturing practices, productivity, quality tools and techniques. From the global perspective, the project will utilise a cadre of highly skilled technical female and male international experts. The fourth output is the development of key performance indicators (KPIs). The development and use of quantitative KPIs will act as a reference point for institutions such as IPMA, CPPRI, IARPMA, INMA and IRPMA in order to analyse the performance of the paper and pulp sector. Gender-related indicators will be introduced. The transfer to and uptake of such indicators by CPPRI, IPMA, IARPMA, INMA and IRPMA will have an impact on the long-term monitoring of the sector. . The KPIs developed at this stage may be used in the development of evidence-based policies for the Indian paper and pulp sector. The final output in the inception phase is the development of action plans for CPPRI, IPMA, IARPMA, INMA and IRPMA. This will involve a structured consultative process with stakeholders, as well as

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process of peer review. Actions will be grouped under three phases, each lasting approximately six months. These will cover, but are not limited to, the following:

Productivity improvements

Energy audits and efficiency

Plant improvement

Quality management systems

Technology development

Technology transfer

Process improvement

Technical trainings and expertise

Market development focusing on export markets

Resource identification

Networking. Implementation Phase After the completion of the diagnostic study, the next one develops the missing capacity that was identified as a result of the inception phase. This will take place primarily within the frame of implementing individual action plans. The first output is the process by which skills and capacity will be upgraded through mechanisms of technology transfer (transfer, adaptation, and implementation); structured and focused expert dialogue; international study tours; twinning programmes; international sabbaticals; and mechanisms of training and learning-by-doing. The merits of each will be discussed in turn. Skills, knowledge and technology transfer The types of skills and knowledge that will be transferred are both tacit and codified. Tacit knowledge includes personal experiences passed on through working in groups in study tours and twinning programmes (see below), whereas codified knowledge will include manuals and reports. For technology transfer

4 to be successful, both parties should achieve benefit and acknowledge each

other's interests. In this way, the stakeholder sensitisation that took place in the first phase and partnership and cooperation will reduce frictions. Structured expert dialogue (SED) A mechanism of an SED will be utilised to support the process of skills and capacity upgrading. This action is crucial as it aims to ensure the scientific integrity of the review through a focused exchange of views, information and ideas. Ensuring the scientific integrity of the review, the SED is an appropriate vehicle for open and substantive discussions between all parties. It will consider scientific information relevant to the review through regular scientific workshops and expert meetings and will assist the preparation and consideration of synthesis reports on the review. Study tours Study tours allow the participants, in which an adequate number of female participants would be ensured, to approach their area of interest in a hands-on and experiential manner, combining theory with practical experience through site visits. This process will enable direct access to skills and best practices in other parts of the world and will facilitate the transfer of tacit knowledge. In general, study tours will be of a period of 14 days and a total number of 10 female and male scientists and engineers will be selected in tranches. The tentative destinations of the study tours are identified in Annex 4, however due consideration will be given to the outcomes of the analysis conducted during the inception phase. As there is the impetus to increase global market share outside of Asia, priority will be given to OECD countries. Twinning programmes It may be the case that female and male individuals within CPPRI, IPMA, IARPMA, INMA and IRPMA may wish to upgrade their academic qualifications in line with their technical skills. A part of this

4“Technology transfer is the application of information (a technological innovation) into use (Gibson

and Rogers, 1994). The technology transfer process usually involves moving a technological innovation from an R&D organization to a receptor organization (such as a private company). A technological innovation is fully transferred when it is commercialized into a product that is sold in the marketplace”. Rogers, Everett M., Shiro Takegami, and Jing Yin. "Lessons learned about technology transfer."

Technovation 21.4 (2001): 253-261.

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process will involve selected individuals from India working directly with foreign counterpart on common problems, which will foster leaning. For this reason the development of mechanisms, where short courses are offered internationally with high level technical institutions

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for example The European Forest Institute (EFI) and the Confederation of European Paper Industry (CEPI). The development of such a mechanism aims to act as an incentive for increased industry involvement. As is stated above, identification of partners for twinning will be identified as an outcome of the analysis conducted during the inception phase. International fellowship tours International fellowship tours are incorporated into the project in order to enable female and male junior scientists and engineers to engage on the ‘shop floor’ of leading international companies through a process of on the job training. This process will expose the incumbents to international best practices. The process of working in a different environment will enable the transfer of crucial tacit and codified skills. Host companies institutes could include Metso (Sweden), Inventia (Sweden) and Valmet (Finland) to name a few (see Annex 4). In general fellowship tours will be for a period of 14 days and a total number of 20 female and male junior scientists and engineers will be selected in tranches. Learning-by-doing Learning-by-doing is a concept within economic theory by which productivity growth is achieved through practice, self-perfection and minor innovations. A factory increases output by learning how to use equipment better without adding workers or investing significant amounts of capital. Learning refers to understanding through thinking ahead and solving backward, one of the main problem solving strategies. As it is crucial for reasons of sustainability and transfer of tacit knowledge outputs 1, 2, 4, 5 and 6 outlined below will have a strong component of learning-by-doing. Training of trainers The concept of learning-by-doing is inextricably linked with the concept of training of trainers. Within the context of the project it is crucial that CPPRI, IPMA, IARPMA, INMA and IRPMA develop the requisite capacities necessary for imparting crucial knowledge and skills at the SME level. With this in mind, the approach presented by UNIDO strongly advocates that the female and male trainers themselves are actively guided through and participate in training a select cluster of units. UNIDO experts will take the lead on this process with the intention of transferring best practices to CPPRI, IPMA, IARPMA, INMA and IRPMA. Once completed CPPRI, IPMA, IARPMA, INMA and IRPMA will have the necessary skills required for their day to day support of firms and units in the Indian paper and pulp sector. Post implementation phase The final two stages of the project in the post implementation phase are reporting and evaluation. Drafting and presentation of the final report will enable experiences gained throughout the project to be codified and disseminated. The final report may be used as a tool for the purposes of providing evidence-based policy advice to the GoI, pertaining to the paper and pulp sector. Recommendations for gender issues will be also provided. A final meeting with stakeholders and DIPP will be conducted to present what we have done and achieved with the use of the KPIs and targets identified during the inception phase. In addition to the presentation of the final report there will be a planned drive of advocacy based initiatives. The rationale for this is to increase the outreach of CPPRI, IPMA, IARPMA, INMA and IRPMA to its client base and to present the portfolio of new improved services offered. Evaluation of the project will be conducted via an independent review process. This is further elaborated in section F.

C.3. RBM code and thematic area code

EC1 Poverty Reduction

EC12 Business, Investment, Technology

5 This activity will link closely with the study of global best practices – a part of output 2.

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C.4. Expected outcomes

The outcomes of the project include the following:

Strengthened capacity of the paper and pulp sector.

Strengthened capability of CPPRI, IPMA, IARPMA, INMA and IRPMA to provide management and technical support to the paper and pulp sector.

C.5. Outputs and activities

INCEPTION PHASE

Output 1: Identification of target clusters/units

Activities Responsibility

1.1 Analysis of the database of potential clusters/ units in 4 regions- South, North, West and East

CPPRI, UNIDO

1.2 Consultation meetings with the stakeholders and identification of potential target units for diagnostic study/ technology status

CPPRI, UNIDO

Output 2: Reports of the pulp and paper sector


2.1 Study of the technology status of the paper and pulp sector with a focus on selected clusters in India

CPPRI, UNIDO

2.2 Review of global best practices and state of the art technologies, including green technologies, for the paper and pulp sector

CPPRI, UNIDO

2.3 Analysis of results and drafting of findings (activities 2.1-2.2) CPPRI, UNIDO

Output 3: Diagnostic studies of CPPRI, IPMA, IARPMA, INMA, IRPMA and selected units


3.1 Assessment of CPPRI, IPMA, IARPMA, INMA and IRPMA on key aspects: R&D infrastructure/ skills, gaps faced and the requirement of international and technical support network, etc. Information will be disaggregated by sex.

UNIDO

3.2 Analysis of the prevalent technologies used and the issues/technology gaps faced by the selected units.

CPPRI, IPMA, IARPMA, INMA and IRPMA, UNIDO

3.3 Conduct analysis such as: SWOT, five forces, and PEST or PESTLE

6.

CPPRI, UNIDO

3.4 Analysis of results and drafting of findings (activities 3.1-3.3) UNIDO

Output 4: List of KPIs


4.1 Utilise a six step process for the development of KPIs, namely:

o Step 1 – Create objective o Step 2 – Describe results o Step 3 – Identify measures o Step 4 – Define thresholds o Step 5 – Upload structure/data into a

performance management system o Step 6 – Interpret results

Note: As it is crucial for reasons of sustainability, this process should be conducted in close collaboration with CPPRI, IPMA, IARPMA, INMA and IRPMA, this is an integral part of UNIDO’s learning-by-doing approach

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UNIDO

6 PESTEL or PESTLE analysis, also known as PEST analysis, is a tool for business analysis of

political, economic, social, and technological factors. 7 The development and use of use of quantitative KPIs will act as a reference point for institutions

such as IPMA, CPPRI, IARPMA, INMA and IRPMA in order to analyse the performance of the paper and pulp sector.

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Output 5: Action plan for CPPRI, IPMA, IARPMA, INMA, IRPMA and industry associations


5.1 Review meeting with stakeholders CPPRI, IPMA, IARPMA, INMA and IRPMA, UNIDO

5.2 Drafting of action plan for capacity building CPPRI, IPMA, IARPMA, INMA and IRPMA, UNIDO

5.3 Expert group meeting – technical review of action plan CPPRI, IPMA, IARPMA, INMA and IRPMA, UNIDO

IMPLEMENTATION PHASE

Output 6: Skills and technical capacity of CPPRI, IPMA, IARPMA, INMA, IRPMA upgraded


6.1 Technology demonstration (lab/bench scale)/transfer (know-how/ knowledge) to CPPRI, IPMA, IARPMA, INMA, IRPMA and clusters and units. The potential areas are:

improved energy efficiency and chemical recovery from non-wood based black liquor using liquor heat treatment or other process

biochemical/membrane separation process for reduction of colour and total dissolved solids (TDS) in effluent

promotion and adaption of zone leaching in medium- sized agro and wood based paper mills


6.2 Four knowledge dissemination workshops (one for each region East, West, North and South) on:

productivity enhancement in recycled fibre (RCF) based mills with new recycling and paper making concept

other available environmentally sound technologies and processes including biotechnology applications

global best practices in paper and pulp manufacturing


6.3 International study tours (details in Annex 7) UNIDO

6.4 Twinning of industrial associations and technical institutions with international equivalents

UNIDO, DIPP

6.5 International fellowship tours, 20 female and male scientists/engineers (14 days)

UNIDO

6.6 Training of trainers in order to create self-sufficiency and sustainability and upscaling

UNIDO

Output 7: Final report (lessons learned, implications, advocacy)


7.1 Drafting of final report UNIDO

7.2 Presentation of final report UNIDO

7.3 Development of a sliding price scale for services offered by CPPRI, IPMA, IARPMA, INMA, IRPMA


7.4 PR and marketing of improved service portfolio of CPPRI, IPMA, IARPMA, INMA, IRPMA


POST IMPLEMENTATION PHASE

Output 8: Evaluation


8.1 Independent evaluation UNIDO

NOTE: In the ‘Responsibility’ column list only those parties with PRIMARY responsibility for implementing the activity

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C.6. Timeline of the activities

Outputs & corresponding activities 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

1 Output 1: Identification of target clusters/units

1.1 Analysis of the database of potential clusters/units in 4 regions- South, North, West and East

1.2 Consultation meetings with the stakeholders and identification of potential target units for diagnostic study/technology status

2 Output 2: Report of the paper and pulp sector

2.1 Study of the technology status of the pulp and paper sector with a focus on selected clusters in India

2.2 Review of global best practices and state of the art technologies, including green technologies, for the pulp and paper sector

2.3 Analysis of results and drafting of findings (activities 2.1-2.2)

3 Output 3: Diagnostic studies of CPPRI, IPMA, IARPMA, INMA, IRPMA and selected units.

3.1 Assessment of CPPRI, IPMA, IARPMA, INMA and IRPMA on key aspects: R&D infrastructure/skills, gaps faced and the requirement of international and technical support network, etc. Information will be disaggregated by sex.

3.2 Analysis of the prevalent technologies used and the issues/ technology gaps faced by the selected units.

3.3 Conduct analysis such as: SWOT, five forces, and PEST or PESTLE.

3.4 Analysis of results and drafting of findings (activities 3.1-3.3)

4 Output 4: List of KPIs

4.1 Utilise a six step process for the development of KPIs

5 Output 5: Action plan for CPPRI, IPMA, IARPMA, INMA, IRPMA and industry associations

5.1 Review meeting with stakeholders

5.2 Drafting of action plan for capacity building

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5.3 Expert group meeting – technical review of action plan

6 Output 6: Skills and technical capacity of CPPRI, IPMA, IARPMA, INMA and IRPMA upgraded

6.1 Technology demonstration (lab/bench scale)/transfer (know-how/ knowledge) to CPPRI, IPMA, IARPMA, INMA, IRPMA. The potential areas are:

improved energy efficiency and chemical recovery from non-wood based black liquor using liquor heat treatment or other process

biochemical/membrane separation process for reduction of colour and TDS in effluent

promotion and adaption of ozone bleaching in medium-sized agro and wood based paper mills

6.2 4 knowledge dissemination workshops (one each region East, West, North and South) on:

productivity enhancement in RCF based mills with new recycling and paper making concept

other available environmentally sound technologies and processes including biotechnology applications

global best practices in pulp and paper manufacturing

6.3 International study tours (details in Annex 7)

6.4 Twinning of industrial associations and technical institutions with international equivalents

6.5 International fellowship tours, 20 female and male scientists/engineers (14 days)

6.6 Training of trainers in order to create self-sufficiency and sustainability and upscaling

7 Output 7: Final report (lessons learned, implications, advocacy)

7.1 Drafting of final report

7.2 Presentation of final report

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7.3 Development of a sliding price scale for services offered by CPPRI, IPMA, IARPMA, INMA, IRPMA

7.4 PR and marketing of improved service portfolio of CPPRI, IPMA, IARPMA, INMA, IRPMA

8 Output 8: Evaluation

8.1 Independent evaluation

17

C.7. Risks

Risk Level Mitigation

Potential change in affiliation of partner focal points

low Through training of not only the key focal points but also their staff in order to build a line of succession for key personnel.

Lack of institutional buy-in low The presence of several key institutions at the opening workshop and the timely sharing of information with counterparts.

Outlook of beneficiaries could be different.

low Stakeholder meeting which will act as a platform for discussion and exchange

Different segments of CPPRI, IPMA, IARPMA, INMA and IRPMA may derive varying degree of benefits depending upon their absorptive capacity and ownership of the project objectives.

low Training the trainers leading to infrastructure for repeat training

Information dissemination may take time

low Advocacy mechanisms put in place

D. INPUTS

D.1. Counterpart inputs

DIPP

DIPP will facilitate to obtain statutory requirements and collection of funds from different sources.

UNIDO

UNIDO will provide technical assistance in terms of: services for hiring of high-level experts, sample collection and required investigations, study tours, database development, training and networking for capacity building, etc.

IPMA

IPMA will provide in-kind inputs in terms of project secretariat facility and all the infrastructural facilities already available at IPMA for the project work.

CPPRI CPPRI will provide in-kind inputs in terms of project secretariat facility and all the infrastructural and laboratory facilities already available at CPPRI for the project work.

IARPMA IARPMA will provide in-kind inputs in terms of project secretariat facility and all the infrastructural and laboratory facilities already available at IARPMA for the project work.

INMA INMA will provide in-kind inputs in terms of project secretariat facility and all the infrastructural and laboratory facilities already available at INMA for the project work.

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IRPMA

IRPMA will provide in-kind inputs in terms of project secretariat facility and all the infrastructural and laboratory facilities already available at IRPMA for the project work.

D.2. UNIDO inputs

1. International staff

The role of the female and male international expert(s) will be to provide the requisite technical support to the project. The role of the incumbent will be to spearhead training activities and analysis and reporting. The international expert will report directly to the project manager.

2. National staff

The role of the female and male short-term national experts will be to assist in the co-ordination activities on the ground. In order for activities to be executed in a timely and effective manner there will be the need to liaise with government institutions and stakeholders. The national expert will report directly to the project manager.

3. Training/workshops

Knowledge dissemination workshop

Purpose To sensitise CPPRI, IPMA, IARPMA, INMA and IRPMA to the activities of the programme

Focus Productivity enhancement in RCF based mills with new recycling and paper making concept

Other available environmentally sound technologies and processes including biotechnology applications

Global best practices in pulp and paper manufacturing

Participant types CPPRI, IPMA, IARPMA, INMA and IRPMA

Location TBD

Expert group meetings

Purpose Skills and technical capacity and capability of CPPRI, IPMA, IARPMA, INMA and IRPMA.

Focus o Discussion and review of action plans


Location TBD

Study tours

Purpose Study tours will be of a period of 14 days and a total number of 10 female and male scientists and engineers from CPPRI, IPMA, IARPMA, INMA and IRPMA will be selected in tranches.

Focus Practical training and skills development in the areas of: o Bleaching of non-wood pulp o Paper making and recycled fibre utilisation o Chemical recovery for non-wood based mills o Energy management o Environmental management o Bleaching of pulp o Chemical recovery for non-wood based mills o Recycled fibre

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Location The destination of the study tours is yet to be decided and will be based on the outcomes of output 2.

Fellowship tours

Purpose Study tours will be of a period of 14 days and a total number of 20 female and male scientists and engineers from CPPRI, IPMA, IARPMA, INMA and IRPMA will be selected in tranches.

Focus On the job training/ learning-by-doing.


Location The destination of the fellowship tours is yet to be decided and will be based on the outcomes of output 2.

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E. BUDGET

INCEPTION PHASE Budget USD Output 1: Identification of target clusters/units 25,000

Output 2: Report of the pulp and paper sector 50,000

Output 3: Diagnostic studies of CPPRI, IPMA, IARPMA, INMA, IRPMA and

selected units.

210,000

Output 4: List of KPIs 30,000


135,000

PROJECT IMPLEMENTATION

Output 6: Skills and technical capacity of CPPRI, IPMA, IARPMA, INMA, IRPMA upgraded.

900,000

Output 7: Final report (lessons learned, implications, advocacy) 75,000

POST IMPLEMENTATION

Output 8: Evaluation 30,000

Total excl. 13% PSC in USD 1,455,000

13% PSC in USD 189,150

Grand Total incl. 13% PSC in USD 1,644,150

BREAKDOWN OF BUDGET BY BUDGET LINE

INCEPTION PHASE Budget line Budget USD

Total (output-

wise)


International expert

BL11 20,000 25,000

National expert

BL17 5,000

Output 2: Report of the pulp and paper sector International expert

BL11 25,000 50,000

Local/non-staff travel

BL15 10,000

Staff travel BL16 5,000

National expert

BL17 5,000

Miscellaneous BL51 5,000

Output 3: Diagnostic studies of CPPRI, IPMA, IARPMA, INMA, IRPMA and selected units


BL11 100,000 210,000


BL15 40,000


National expert

BL17 30,000


Output 4: List of KPIs International expert

BL11 20,000 30,000

National expert

BL17 10,000



BL11 50,000

135,000


BL15 30,000


National expert

BL17 20,000

21

Training workshops

BL30 25,000


PROJECT IMPLEMENTATION

Output 6: Skills and technical capacity of CPPRI, IPMA, IARPMA, INMA and IRPMA upgraded


BL11 300,000 900,000


BL15 200,000


National expert

BL17 70,000

Training workshops

BL30 300,000


Output 7: Final report (lessons learned, implications, advocacy)


BL11 35,000

75,000 Local/non-staff travel

BL15 10,000



POST IMPLEMENTATION

Miscellaneous (Evaluation)

BL51 30,000 30,000

Total excl. 13% PSC in USD 1,455,000

13% PSC in USD 189,150

Grand Total incl. 13% PSC in USD 1,644,150

F. CO-ORDINATION, MONITORING, REPORTING AND EVALUATION Co-ordination Since this project has multiple stakeholders and require multi-disciplinary approaches, close co-ordination between key parties (DIPP, CPPRI, IPMA, IARPMA, INMA and IRPMA, selected paper and pulp plants) will be required for the successful completion of the project activities. The project will aim at achieving close co-ordination and co-operation through multi-stake holders meetings. The project will be implemented by UNIDO and CPPRI, IPMA, IARPMA, INMA as well as IRPMA and be supported by a team of technical experts at UNIDO Headquarters as well as CPPRI, IPMA, IARPMA, INMA and IRPMA teams at the field level. Project steering committee IC-ISID will have two steering committee meetings per year. During these meetings progress of this and other projects implemented with the support of the UNIDO centre will be discussed. With respect to this project, steering committee meetings will have the participation of representatives of CPPRI, IPMA, IARPMA, INMA and IRPMA as well as female and male national experts.

Steering committee meetings (2 per year)

Purpose Project co-ordination and status review

Focus Report on project activities, progress and next steps

Participant types CPPRI, IPMA, IARPMA, INMA and IRPMA, cluster representatives as well as female and male national experts.

Location DIPP or the IC-ISID

22

Progress reporting:

Monitoring of the project will be undertaken on the basis of measurable indicators. A set of KPIs will be identified to allow their quantitative and qualitative assessment, reached progress and impact. These indicators will allow periodic monitoring by UNIDO. DIPP will be kept abreast in continuous fashion through quarterly progress reports.

Technical reporting: A final report will be produced at the end of the project. Monitoring:

Results Indicators Means of verification

Objective


Technology transfer agreements

National statistics

Production values

Productivity

Exports

Energy usage

Patents IPR

National statistics

CPPRI, IPMA, IARPMA, INMA and IRPMA

Project reports

Outcomes

The outcome of the project is the strengthened capacity and capability of CPPRI, IPMA, IARPMA, INMA, and IRPMA to provide management and technical support to the Indian paper and pulp sector.

Change in services

Change in internal policy

Change in management practice

Technologies offered

Final evaluation report

Outputs


4 regional databases List of target firms / units

Output 2: Report on the pulp and paper sector

1 report submitted to DIPP

Report submitted to DIPP

Output 3: Diagnostic studies of CPPRI, IPMA, IARPMA, INMA, IRPMA and selected units.

1 report submitted to DIPP

Report submitted to DIPP

Output 4: List of KPIs 1 list of KPIs submitted to DIPP

List of KPIs submitted to DIPP

Output 5: Action plan for CPPRI,

IPMA, IARPMA, INMA, IRPMA and

industry associations

1 action plan Action plan submitted to DIPP

Output 6: Skills and technical

capacity of CPPRI, IPMA,

IARPMA, INMA and IRPMA female

and male staff upgraded

Technologies transferred

4 trainings conducted

2 meetings conducted

10 study tours conducted (10 female and male participants)

20 fellowship tours conducted (20 female and male scientists)

4 workshops conducted

Contracts

Licenses

Blueprints

Participant lists

Self-evaluation

23

Output 7: Final report (lessons

learned, implications, advocacy)

Final report Report submitted to DIPP, CPPRI, IPMA, IARPMA, INMA and IRPMA

Output 8: Evaluation Final evaluation report Report submitted to DIPP, CPPRI, IPMA, IARPMA, INMA and IRPMA

Evaluation: Another monitoring mechanism is provided by UNIDO’s project evaluation mechanism. This results in one final project evaluation report. The final evaluation report will be prepared at the end of the 21 months within the three months prior to the completion of the project.

G. PRIOR OBLIGATIONS AND PREREQUISITES There are no prior obligations or prerequisites for the project to commence.

H. LEGAL CONTEXT

“The Government of the Republic of India agrees to apply to the present project, mutatis mutandis, the provisions of the Revised Standard Technical Assistance Agreement concluded between the United Nations and the Specialized Agencies and the Government on 31 August 1956 and as amended on 3 October 1963.”

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Annex 1 – LETTER OF REQUEST FOR URGENT SUBMISSION OF PROJECT DOCUMENT

25

Annex 2 – PARTNERS OF PROGRAMME IMPLEMENTATION

Department of Industrial Policy and Promotion (DIPP) DIPP, working directly under the Ministry of Commerce and Industry, will be the nodal ministry for the project. Besides other responsibilities, DIPP is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives. While individual administrative ministries look after the production, distribution, development and planning aspects of specific industries allocated to them, DIPP is responsible for the overall industrial policy. International co-operation for industrial partnership is achieved through both bilateral and multilateral arrangements. DIPP also coordinates with apex industry associations such as the Federation of Indian Chambers of Commerce and Industry (FICCI), Confederation of Indian Industry (CII) and the Associated Chambers of Commerce of India (ASSOCHAM in their activities relating to promotion of industrial co-operation and to stimulate foreign direct investment in India besides participating in the Joint Business Councils and other interactive sessions organised by industrial associations. DIPP would provide overall guidance as well as facilitate to obtain statutory requirements and collection of funds from different sources. Indian Paper Manufacturers Association (IPMA) IPMA as a body represents the resurgent and organised face of paper sector in India. Large Integrated Paper Mills from private and public sector with a product mix of all varieties of paper (writing, printing, packaging, speciality, paperboards and newsprint) located in all regions and using conventional fibre such as wood and bamboo and also unconventional raw materials like recyclable waste paper, agro-residues, viz. bagasse and wheat straw comprise the membership of IPMA in a broad spectrum. IPMA members account for more than one third of the industry's production of paper and paperboard. With this the overriding objective of IPMA is to promote the interests of paper industry in India and help it achieve global competitiveness while striving to be an active participant in the policy making process. Central Pulp & Paper Research Institute (CPPRI) CPPRI was established in 1980 as an autonomous body under the administrative control of DIPP, Ministry of Commerce and Industry, to promote R&D in the field of paper and pulp. Over the years, the emphasis of CPPRI's R&D effort has changed as per the requirements of the industry identification and utilisation of alternative fibre resources and resource conservation has gained significance. The need to carry out research work in processing technology leading to the innovation of the processes and technologies in the area of pulping, chemical recovery, environmental management and quality improvements has been increasingly felt. For carrying out the R&D work at CPPRI and to meet the requirements of development, transfer and commercialisation of technologies, appropriate pilot plant facilities have been created. Indian Agro and Recycled Paper Mills Association (IARPMA) IARPMA is the association serving the Indian industry for their healthy growth. The present activities of the association also include the technology transfer for upgrading and modernisation of the process and equipment through expertise services available world over. To meet the growing demand of such services for the Indian paper industry, IARPMA provides the logistic support to the international organisations in finding and fixing the appropriate partner in India for their expansion of the business activities in the field of consultancy, manufacturing, rebuilding, trouble shooting and various other studies related to pulp and paper. Indian Newsprint Manufacturers Association (INMA) INMA represents the resurgent and organised platform of newsprint industry in India. It makes representations to the local and central authorities on matters related to the trade and commerce of newsprint industry. INMA is a unique body in as much as it has both large and small mills from private and public sector from across the country as its members.

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Annex 3 - LOG FRAME

Results Indicators Means of verification Assumptions & Risks

Objective


Technology transfer agreements

National statistics

Production values

Productivity

Exports

Energy usage

Patents IPR

National statistics

CPPRI, IPMA, IARPMA, INMA and IRPMA project reports

Access to up-to-date data

Outcomes

The outcome of the project is to strengthen the capacity and capability of CPPRI, IPMA, IARPMA, INMA and IRPMA to provide management and technical support to the Indian paper and pulp sector.

Change in services

Change in internal policy

Technologies offered

Change in management practices

Final evaluation report Access to up-to-date data

Partner buy-in

Outputs


4 regional databases List of target firms / units Partner buy-in

Participation

Ability of participants to complete training

Output 2: Report of the pulp and paper sector

1 report submitted to government Report submitted to DIPP

Output 3: Diagnostic studies of CPPRI, IPMA, IARPMA, INMA and IRPMA and selected units

1 report submitted to government Report submitted to DIPP

Output 4: List of KPIs 1 list of KPIs submitted to government List of KPIs submitted to DIPP

Output 5: Action plan for CPPRI,

IPMA, IARPMA, INMA and IRPMA

1 action plan Action plan submitted to DIPP

Output 6: Skills and technical

capacity of CPPRI, IPMA, IARPMA,

INMA and IRPMA upgraded

Technologies transferred

4 trainings conducted

2 meetings conducted

10 study tours conducted (10 female and

Contracts

Licenses

Blueprints

Participant lists

27

male participants)

20 fellowship tours conducted (20 female and male scientists)

4 workshops conducted

Self-evaluation

Output 7: Final report (lessons

learned, implications, advocacy)

Final report Report submitted to DIPP

Output 8: Evaluation Final evaluation report Report submitted to DIPP

28

Annex 4 – LIST OF FIRMS AND INSTITUTIONS Metso (Sweden): http://www.metso.com Metso helps drive sustainable improvements in performance and profitability in their customers' businesses in the following industries: mining, aggregates, oil and gas, pulp and paper, recycling pulp and paper, mechanical pulping, chemical pulping and recycled fibre. Metso offers the pulp and paper industry a full range of intelligent control and on-off valves, and is in a strong position to deliver results. It actively develops solutions for the future through continuous and extensive R&D efforts. Centre Technique du Papier CTP (France): http://www.webctp.com/gb/default.cfm CTP promotes the technical development of the pulp, paper and board industry as well as the related industries (printing; packaging-converting; suppliers; builders, etc.), all customers of CTP, in order to:

Improve their performances

Innovate and transfer know-how

Bolster their productivity, and competitiveness

Help meet better the markets’ needs and expectations

Advance scientific and technological knowledge in the due respect of the sustainable development requirements

Conduct general research

Integrate innovative technologies

Develop new products

Monitor technological developments, strategically and in the regulations

Standardisation

Foster technological transfer

Research results by consultancy and expertise,

Training

Publications and scientific communications

Tailor-made services such as analysis, trials, confidential studies and certification of products

Inventia (Sweden): http://www.inventia.pl INVENTIA is a global vendor of telemetry and location tracking products based on GSM/GPRS and GPS technologies. Founded in 2001 and located in Warszawa, Poland, INVENTIA has become one of the leaders in professional GPRS telemetry and control. The scope of their services offered includes not only telemetry and localisation modules but also open architecture solutions based on proven industrial standards. INVENTIA delivers configuration and system integration tools providing open connectivity to customer SCADA systems, relational data bases and data management systems. The primary goal of INVENTIA activity is to satisfy customer needs by:

Developing, manufacturing and delivering high quality, innovative products, such as telemetry modules, location tracking modules and specialised electronic devices.

Developing modern software tools and systems providing technical support, consulting and training and other services related to the products offered

KCL (Finland): http://www.kcl.fi KCL is a small scale paper and board mill coupled with a comprehensive printing house. This mill like environment is unique and enables the implementation of a wide range of laboratory and pilot scale testing and production activities. KCL offers a unique pilot and laboratory scale environment for testing, production, scale-ups, demonstrations along with process design and construction located in a centralised site. KCL is an ideal platform for developing existing products and processes. It also serves as an innovative new product developer derived from furthering the science of paper and board. Biomaterial based new products can be found and developed through complete utilisation of KCL’s advanced equipment and expertise. KCL provides an infrastructure where the customers’ own ideas and equipment can be tailored and fitted into the process. Their customers come from:

Pulp mills and fibre production

Paper and board mills

Packaging and converting industry

Tissue and hygiene product manufacturers

http://www.metso.com/

http://www.webctp.com/gb/default.cfm

http://www.inventia.pl/

http://www.kcl.fi/

29

Chemical and material suppliers

Biofuels and biomaterials suppliers

Technology suppliers Andritz (Finland – actually Austria): http://www.andritz.com Andritz constitutes a technology and service partner for the production of pulp, paper, tissue and board – and in the generation of power from renewable resources. ANDRITZ PULP & PAPER has a complete portfolio of systems for pulp and paper production from the woodyard to the finished product. This includes:

Processing of logs, annual fibres and biomass

Production of chemical, mechanical and recycled fibre pulps

Chemical recovery

Power generation from traditional and alternative fuels

Stock preparation, including deinking

Machine approach systems

Machines for tissue, board, and paper production

Finishing/calendaring/coating

Handling of reject materials and sludge Valment (Finland): http://www.valmet.com/en/home.nsf Valmet’s technology offering includes pulp mills, tissue, board and paper production lines and power plants for bioenergy production. Their services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. They have over 400 service agreements and offer their customers a global network of 70 service centres. Valmet’s fibre technical know-how offers a chain of intelligent, integrated and complete processes for chemical and mechanical pulping, recycled fibre processing, stock preparation and panel board production to ensure that the desired final product quality can be produced from all known fibre raw materials. Optimum and reliable performance of each processing stage as regards quality, economy and environmentally sound operation is their target. Moreover, Valmet’s fibre processes strive to meet current demands for increasingly higher capacities to guarantee improved profitability. As pulp manufacturers look for ways to improve process efficiency and business profitability, they are turning to intelligent automation solutions and services from Valmet. With an industry-leading automation offering that ranges from analysers and measurements to comprehensive plant-wide automation solutions, they are in a strong position to deliver results. European Forest Institute (EFI) EFI undertakes the following activities:

Conducting research and provide policy support on issues related to forests.

Facilitating and stimulating forest-related networking and promoting the dissemination of unbiased and policy-relevant information on forests and forestry.

Advocating for forest research and for the use of scientifically sound information as a basis for forest policies.

Its work in the field of policy support includes enhanced support for decision takers and policy makers. They host the EU FLEGT Facility which supports the EU Forest Law Enforcement Governance and Trade (FLEGT) process in developing countries, related to the implementation of the EU FLEGT Action Plan; and the EU REDD Facility, which supports partner countries in improving land use governance as part of their effort to slow, halt and reverse deforestation. Confederation of European Paper Industry (CEPI) CEPI is a non-profit-making organisation. It has three standing committees, which take long-term strategic perspectives on the issues affecting the industry. These are the Environment and Safety, Climate Change and Energy and Raw materials committees under which a number of ad-hoc issue groups operate. Their mission/vision includes: • To secure pulp and paper industries competitiveness towards EU policy makers; • To represent the paper industry with EU institutions and Brussels based stakeholders; • To improve the image and visibility of the paper industry and other related industries; • To be the example of how competitiveness and sustainability can go hand in hand.

http://www.andritz.com/

http://www.valmet.com/en/home.nsf

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Annex 5 – SWOT ANALYSIS OF PAPER MANUFACTURING SECTOR Competitive strengths:

Large and growing domestic paper market

Up to date research institute (CPPRI)

Know how in non-wood pulping and applications

Well-developed printing industry

Local market knowledge Competitive weaknesses

Fibre shortage, especially virgin wood fibre

Small and fragmented industry structure, many non-competitive mills/machines

Highly skilled and job specific manpower is not available

Quality and availability of some of the domestic pigments and chemicals

Environmental problems of most of the small pulp mills and also some big mills

Low standard of converting industry

Infrastructure, transportation

High cost of raw material including wood, non-wood and waste paper

High energy costs

High cost of financing

Impact of high local taxes (sales tax, entry tax, etc.)

Low input into mill level R&D Competitive opportunities

Domestic market potential

Modern, world scale paper machine would be cost competitive in most grades

Forest plantation potential

Integrates of combined wood and agro based paper making

Government literacy program – increasing demand for printing/writing papers

Low labour costs (allow e.g. cost effective sorting of imported mixed waste)

Export potential Competitive threats

Unprepared mills for international competition (WTO entry) both on price and quality

Decline in capacity due to environmental pressures

Decline in capacity as some of the segments/group of mills are unable to compete at national and international levels with respect to quality and cost of products

Delayed forest plantations, deficit of wood fibres

Weakening competitiveness of domestic industry due to shortage and cost of basic inputs

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Annex 6 – SPECIFIC ISSUES FACED BY THE PAPER AND PULP SECTOR Wood: India's wood resources are limited therefore the cost of wood is much higher in global comparison. Since there is a lack of Government's enabling policies favouring industrial/production plantation, securing future wood supplies will be the Industry's biggest challenge. Wood based segment of the paper industry meets its current wood requirements mainly through social/farm forestry and supplements with purchases made from the State Forest Development Corporations.

Bagasse/Straw: Though annual availability of agro residues is large yet, this may not be able to sustain the future growth of the Industry, taking due account of quality of paper required, environmental issues involved, etc. Moreover, bagasse is increasingly used by sugar mills for co-generation of power and no more easily available to the paper mills as raw material.

Waste paper: Recovered fibre consumption is going up globally. In India about 850,000-1,000,000 tons of waste paper is being currently recovered annually. The recovery rate works out to about 20% which is much lower in comparison with 65% recovery achieved by many global players. Low recovery is on account of alternate use of paper in wrapping, packing, etc. The utilisation rate of recovered fibre is only 47%. Paper mills are heavily dependent on imported waste paper which commands exorbitant price due to inadequate availability. India needs a well-defined and aggressive system for collection, sorting, grading and utilisation recyclable waste paper to contain imports.

Energy cost: The GoI has recently withdrawn core sector status hitherto enjoyed by the paper industry. The cost of coal is escalating and the prospect of availability of quality coal is diminishing. The steep price rise in coal has resulted in an escalation of cost of production of those mills which happened to be dependent on imported coal for generation of steam/power. Also, power purchased from the grid is proving expensive for the industry.

Certification: Forest stewardship council certification is becoming a non-trade barrier for Indian paper companies. As bulk of the raw material is obtained from farm and agro-forestry, IPMA is of the view that it would not be practical for huge number of farmers involved in social/farm forestry to group and obtain the FSC certificate for their produce. Though the farm forestry is a sustainable model promoted by the paper industry, the FSC principles and criterions are difficult to satisfy. IPMA is monitoring the move set afoot by the Government of India to establish Indian Forest Stewardship Council to help the process of certification.

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Annex 7 – DETAILS OF STUDY TOURS

Organization Area No. of personnel

Potential institutes/ colleges (tentative)

Proposed duration of study tour

1 CPPRI Bleaching of non-wood pulp 1 Metso (Finland), CTP (France)

2 weeks

2 CPPRI Paper making and recycled fibre utilisation

1 Inventia (Sweden), CTP (France)

2 weeks

3 CPPRI Chemical recovery for non-wood based mills

1 KCL (Finland), Andritz (Finland), Valmet (Finland)

2 weeks

4 CPPRI Energy management 1 KCL (Finland), Inventia (Sweden)

2 weeks

5 CPPRI Environmental management

1 IVL (Sweden), IMT (Italy)

2 weeks

6 IPMA Bleaching of pulp 1 Metso (Finland), CTP (France)

2 weeks

7 IARPMA Chemical recovery for non-wood based mills

1 KCL (Finland), Andritz (Finland), Valmet (Finland)

2 weeks

8 INMA (Cluster representative)

Recycled fibre 1 Inventia (Sweden), CTP (France)

2 weeks

9 IRPMA (Cluster representative)

Energy/environmental management

1 KCL (Finland), Inventia (Sweden), IVL (Sweden), IMT (Italy)

2 weeks

10 INMA (Newsprint)

Recycled fibre 1 Inventia (Sweden), CTP (France)

2 weeks

united nations industrial development organization … · the indian paper industry accounts for...

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