Independent India had a dream to come out of import burden of currency paper for a long time. To become self reliant on currency and bank note paper requirement and also to save the drain of foreign exchange, in early sixties the decision for dream project "Security Paper Mill" was realized. Looking into the main pre-requisites for any process industry like land, water, electricity, transportation and manpower etc, Hoshangabad had been chosen as the best option.

The buildings were designed and constructed by the CPWD and the civil works commenced in July, 1962. Construction of the main building about 500M long and 60M wide, commenced on the 28^th Oct., 1963. Eastern end of the building is two storeyed and the rest single storeyed. Entire production sections are force ventilated and the finishing area is air conditioned with the air-conditioning plant located in the basement.

The first pair of paper making machines was commissioned on 27th June 1967. The other pair of 3rd and 4th machine was commissioned on 27th Nov 1967. Mill was formally inaugurated and dedicated to the nation on the 9th March, 1968 by the then Deputy Prime Minister, Shri Morarji Desai.