SPB commenced commercial production in December 1962, on commissioning a 20000 tpa integrated facility, comprising a Pulp Mill and two Paper Machines (PM-1 and PM-2), capable of producing, writing, printing, kraft and poster varieties of paper. The Plant capacity was expanded to 35000 tpa in 1967-68, by modification of PM-2 and addition of a third Paper Machine (PM-3). The cost of the expansion scheme, at Rs 34 Millions, was part financed by All India Financial Institutions (Rs 31 Millions).

In the second stage of expansion, undertaken in 1976, capacity was enhanced to 55000 tpa, through addition of a 60 tpd new Paper Machine (PM-4). Cost of the project, including cost of a Chemical Recovery Boiler and other facilities for enhanced requirement of utilities, was estimated at Rs. 176 Millions. The same was part financed by term loans from Institutions and Banks to the extent of Rs. 145 Millions and the balance out of internal generation. SPB undertook various equipment balancing and modernisation programmes, since then, for improving its operating efficiency, captive power generation capacity, etc., upto 1992-93.

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