New Delhi, May 29 (IANS): Union Finance Minister Arun Jaitley on Saturday will inaugurate the 6,000 ton new bank note paper line at Hoshangabad in Madhya Pradesh, a statement said.

In a statement issued here on Friday, the finance ministry said Jaitely will inaugurate the new line set up at an investment of Rs.495 crore and also flag off the first consignment of Rs.1,000 bank note paper.

Madhya Pradesh Chief Minister Shivraj Singh Chouhan and other dignataries would also be present during the occasion.

The new paper line is part of the indigenisation, of the bank note paper, under taken by Security Printing and Minting Corporation of India Limited (SPMCIL).

SPMCIL has also set-up another joint venture company called Bank Note Paper Mill India Pvt. Ltd (BNPMIPL) at Mysuru with 12,000 ton capacity. The plant is expected to go on stream by the end of this year.

The combined production from the new paper line at SPMCIL, Hoshangabad and BNPMIPL will be around 18,000 ton meeting the major requirement of the bank note paper.

The combined savings of foreign exchange from these two bank note projects will be about Rs.1,500 crore in the coming years, the statement said.