Blacklisted De La Rue to Set Up Currency Printing Unit in Maharashtra, India

[Bimat]

Fadnavis Lets Blacklisted UK Banknote Printing Firm Set Up Unit

Chandan Nandy

The Devendra Fadnavis-led BJP government of Maharashtra recently signed an agreement with British company De La Rue, which has been blacklisted by the Ministry of Home Affairs, and awarded it 10 acres of land in Aurangabad for printing both Indian and foreign currency notes.

Disclosing this to The Quint, Shiv Sena MP Hemant Godse said the agreement was signed six months ago and a 10-acre plot for the proposed plant has been identified at the Maharashtra Industrial Development Corporation (MIDC) complex in Aurangabad. The currency printing plant will cost an estimated Rs 700 crore, Maharashtra government sources said.

The factory, which "processes the raw material imported from Switzerland", began operations in 2004 and is said to be "IB (Intelligence Bureau) protected".

Jaitley Aware of Deal

Godse claimed that when he shared this information with Union Finance Minister Arun Jaitley at a function in Nashik in early December, by which time Prime Minister Narendra Modi's demonetisation drive was already underway, the latter cautioned him that De La Rue had previously been blacklisted by the Ministry of Home Affairs (MHA).

De La Rue was blacklisted by the MHA in 2011 for two reasons. First, it supplied the same currency printing paper that it sold to India to Pakistan. And secondly, it was found to have supplied defective currency printing paper worth Rs 300 crore. The defect was detected by the Security Printing and Minting Corporation of India Ltd (SPMCIL) following tests.

Fadnavis Govt's Keenness

But this did not deter the Fadnavis government to scrap the agreement with the blacklisted British firm as it had committed itself to Modi's 'Make in India' programme.

"De La Rue representatives have told Maharashtra government officials that 90 percent of its printing efforts will be to produce foreign currency, though the company may also print 10 percent of Indian notes at the Aurangabad plant," Godse said, adding that "De La Rue's believes that its labour cost will be much lower in India."

Banknote Printing

Printing of Indian currency notes cannot be done without express permission from the RBI. Besides, a closed and secretive tender process is followed by the Bharatiya Reserve Bank Note Mudran Pvt Ltd (BRBNMPL). BRBNMPL is a subsidiary of the RBI that runs two banknote presses.

While some quantity of printing paper is manufactured indigenously, the bulk of it is procured from foreign firms such as Crane, Giesecke & Devrient Consortium, Papierfabrik Louisenthal and ArjoWiggins.

Fresh Order

Even as the four presses – at Salboni and Mysuru (under the BRBNMPL) and at Dewas and Nashik (SPMCIL) – struggle to print sufficient numbers of Rs 500 notes, banknote industry sources said Letters of Intent have been issued to seven foreign firms for the import of 27,000 tonnes of currency printing paper. The limited tender was kept a closely guarded secret as the price bids were to be opened in the midst of Modi's controversial demonetisation and remonetisation process.

Among the selected firms are Fedrigoni SpA (which uses the trademark Bariano) of Italy, Lanquart of Switzerland, ArjoWiggins from France, PTPura of Indonesia, Louisenthal of Germany and Crane from Sweden. The paper will be used for printing not only the new Rs 500 but also the Rs 100, Rs 50, Rs 20 and Rs 10 notes. The sources said that delivery, to be done by ships, is expected in March.

Source: The Quint

[Bimat]

Reasons for blacklisting De La Rue can be read here.

Aditya

[Bimat]

Government denies collaboration with De La Rue, says the company supplied paper for notes till 2010

Arindam De  | Posted by Shraddha Jandial
New Delhi, January 17, 2017 | UPDATED 23:44 IST

Ministry of Finance has denied any collaboration with the tainted UK based Note Printing Company, De La Rue. Recently there have been reports in sections of media implying that the Union Government has compromised the national interest by collaborating with a tainted UK based Note Printing Company.

In a press release the ministry clarified that the said company had been supplying paper for bank note till 2010.  Then, following a decision taken in 2013, the company was cleared to supply a security feature for bank notes till December 2015.

The ministry further stated that no fresh contract has been given to this company by the government during the last three years.

The Ministry of Finance has withheld security clearance for this firm sice 2014 and as such the  government of India have placed no fresh orders with the said company since then. The company in question has applied for setting-up a factory in India. However it was further clarified that no action has been taken on their application.

In the second week of November, as demonetisation hit, reports emerged that UK headquartered De La Rue was printing currency for the Indian government and that it was blacklisted under the previous UPA government. By the second week of December 2016, De La Rue's Chief Commercial officer Richard Hird categorically refuted as "defamatory and malicious" those allegations and warned of "appropriate steps" to protect its reputation. De La Rue is one of the world's leading commercial banknote printer who reportedly supports 140 countries in their currency printing process, partially or wholly. The company is a founder member of the Banknote Ethics Initiative and reportedly practises the highest ethical standards.

De La Rue plc manufactures banknotes, passports and tax stamps, brand authentication and specialised paper and is headquartered in Basingstoke, Hampshire, England. The company had humble beginnings and was founded by Thomas de la Rue, who moved to London in 1821 and set up in business as a stationer and printer. In 1831 he secured his business a Royal Warrant to produce playing cards. In 1855 it started printing postage stamps and in 1860 it began printing banknotes. It was first listed on the London Stock Exchange in 1947. The company, then called Thomas De La Rue & Company, Ltd., changed its name in 1958 to The De La Rue Company Limited. De La Rue has an office in Delhi but is not contracted to print or supply technology for currency printing as of now.

Source: India Today