Jun 19, 2008. /Lesprom.com/. Tamil Nadu Newsprint and Papers Ltd (TNPL) says it will place an order for a new paper line at its Pugalur plant in Tamil Nadu next month. The paper major plans to increase its capacity by 155 thousand tonnes per annum (tpa) to 400 thousand tpa on an outlay of Rs.7.25 billion ($171 million). The company announced it would commence trial production in October 2009. “We expect to place the order for the paper machine next month,” TNPL deputy managing director A. Velliangiri told IANS. While he declined to name the companies that have submitted bids, it is learnt Europe’s Voith Paper is one of the major contenders. Velliangiri said an application for environmental clearance for the new paper line has been submitted to the central ministry of environment and forests. TNPL, the largest exporter of wood-free paper has decided to put renewed focus on exports. “We expect to ship out around 45 thousand tonnes this year,” Velliangiri said. For the current fiscal, the company hopes to roll out around 245 thousand tonnes of printing and writing paper. The company is also investing Rs.550 million ($13 million) to upgrade its existing machinery.