Tamil Nadu Chief Minister J Jayalalithaa formally launched the facility through video conference from Kodanad, an official release said.
The machinery would produce 300 metric tonnes of paper pulp on a day and usage of 100 tonnes wood paper pulp would be reduced, it said.
Similarly, TNPL as part of meeting up its power requirements has set up boilers at an investment of Rs 167 crore which would increase the power generation to 103.62 MW from 81.12 MW.
Besides launching this initiative, Jayalalithaa unveiled distribution of drinking water scheme to villages near the factory, established under the Corporate Social Responsibility of TNPL at an investment of Rs 88.34 lakh, the release added.