Government Directs Mints to Ramp-up Coin Production

The Government of India has directed the Security Printing and Minting Corporation of India Ltd (SPMCIL) to enhance production at its four minting units in Kolkata, Mumbai, Hyderabad, and Noida by operating in two shifts. This move is in response to the annual demand from the Reserve Bank of India (RBI), which has requisitioned 771 crore pieces of coins. According to sources within the mint, an estimated 650 crore coins have been produced thus far in the current year.

Coin production experienced a slowdown in early January when SPMCIL initially ordered a temporary stoppage. Subsequently, an order for resumption at a reduced pace was issued. The initial stoppage order was lifted following the intervention of the finance ministry, prompted by the workers' request.

SPMCIL had temporarily halted production due to a slowdown in the process of lifting coins by the RBI. The central bank encountered storage challenges as its vaults were already full with demonetized Rs 500 and Rs 1,000 notes. To address these challenges, SPMCIL is urging its minting units to operate in two shifts, aiming to efficiently fulfill the RBI's coin demand. This proactive measure aligns with efforts to streamline production and maintain an effective supply of coins in the market.