Paper units disappointed

Pradeep Dhobale, the chief executive of ITC Bhadrachlam, the paperboard and specialty paper division of ITC, said the proposal to reduce customs duty across the board to 15 per cent could force domestic paper companies to cut prices if imported paper became cheaper than Indian grades.

"Lower customs duty on imported paper will affect the domestic paper industry and bottomlines will come under pressure. Besides, there is no direct announcement or incentive about the industry a whole," he said.

However, Dhobale said greater funds for education and education infrastructure would help raise demand for paper. The chairman of West Coast Paper, S K Bangur, agreed with Dhobale that the industry had gained little in the budget.

"The paper industry expected duty to be reduced to atleast 12 per cent, if not to 8 per cent," Bangur pointed out.

Commenting on the investment in education, he ruled out any immediate impact on the paper industry.

The managing director of J K Corp Ltd, Harsh Pati Singhania, said that the paper industry's demand for a uniform excise tariff has been overlooked.

However, the increased focus on education as well as overall economic growth will positively impact the paper industry, he added.