New currency security features to reduce counterfeiting:Pranab

Reforms for improving security features in notes and coins will ensure reduced incidence of counterfeit currency, Finance Minister Pranab Mukherjee said today.

"I am confident that as a result of the comprehensive reforms being undertaken in the area of currency and coinage over the last two years, we will be self-reliant to a large extent," Mukherjee said here.

"The reforms related to security features will also ensure that the incidences of fake currency are reduced considerably," he said.

He was speaking on the occasion of commissioning of the new Bank Note Printing Line of the Security Printing and Minting Corporation of India Limited (SPMCIL) here.

Mukherjee said operationalisation of the new line will contribute to the government and RBI efforts to increase security in currency notes.

In his speech, the Finance Minister said a series of measures have taken to strengthen the security features of Indian currency notes. In addition, a high-level committee has been under the chairmanship of Directorate of Currency Director General Bimal Julka for acquiring security feature technologies through global competitive bidding.

"This acquisition of new security features is being done in an efficient and transparent manner. I am hopeful that with the up-gradation of security features, the government will be able to check the menace of fake currency circulation in the country," Mukherjee said.

As part of the efforts for modernisation of currency printing presses, a line of currency printing machines was commissioned today at the Bank Note Press, Dewas. Machines worth over Rs 233 crore were purchased for this line.

"The online printing and finishing equipments are state-of-the-art with higher speed and shall have capability for incorporation of sophisticated print-based security features, which will help in reducing counterfeiting of currency notes," Mukherjee said.

"I am informed that this machine will also result in improved productivity as well as optimisation in the consumption of raw materials, especially the ink and manpower requirement," he added.

He also said the Coinage Act, 2011, which was enacted by Parliament recently, will simplify the laws governing coins and currencies by amalgamating the earlier existing four Acts and one ordinance relating to coinage.

"This Act enables the central government to establish a new mint at any place based on the rising demand of coins. It also provides for stringent punishment with imprisonment which may extend up to seven years and with fine if a person is found to be making or melting or destroying the coins," Mukherjee said.

The government had in 2009 constituted a committee under Shilabhadra Banerjee to suggest a roadmap for progressive indigenisation of various inputs.

"Following the recommendations of this committee, the government has initiated steps to indigenise the production of banknote paper to meet our domestic requirements of banknote paper. A foundation stone of Bank Note Paper Line with annual capacity of 6,000 metric tonnes was laid on December, 2011, at SPM, Hoshangabad... This unit is likely to be commissioned by October, 2013," the Finance Minister said.

Mukherjee added that the Bank Note Paper Mill at Mysore formed under a joint venture, with an annual capacity of 12,000 MT per annum, is also scheduled to commence commercial production by April, 2014.

"These steps would make the country nearly self- sufficient in the production of banknote paper," he said.

He also commended SPMCIL for its performance during the past few years.

"SPMCIL has returned about Rs 1,000 crore of loans from the RBI and the Ministry of Finance and by this year-end, it is likely to be a zero debt company. SPMCIL has been granted Mini Ratna category-I status," he said.

"SPMCIL is making coins and currency not only for India, but also for other countries.

The expertise gained by the company over the years should be harnessed further by developing products for other countries and assuming a leadership position in this domain," Mukherjee added.

SPMCIL has a Rs 2,500 crore investment plan for 2009-14 and the minister said this is likely to give a big boost to the efforts for indigenisation of security products used in the creation of currency.

"Steps to enhance the production of indigenous ink for security printing has been taken up through the modernisation and expansion of the ink factory at the Bank Note Press, Dewas," he said.