Sangal Papers Limited(SPL) was incorporated as a public limited company on 25th November, 1980 with the main object for the setting up a project for the manufacture of paper. The initial project of the company to manufacture kraft paper with an installed capacity if 4500 MT per anum was financed by Uttar Pradeshiya Financial Corporation (UPFC), The Pradeshiya Industrial and Investment of U P Limited(PICUP) and Syndicate Bank jointrly with PICUP in lead. Term loans to the extent of Rs. 83.00 lakhs were sanctioned for setting up the project. In addition to the term loans, PICUP and UPSIDC also paticipated in the capital of the company to the tune of Rs. 4.00 lakhs and Rs. 6.00 lakhs respectuively in the year 1982. The original project was manufacturing kraft paper. Due to the prevailing market conditions and to imprve the profitability, The product mix was changed to include writing, printing and newsprint paper. Other measures implemented to increase cost effectiveness and efficiency were: 1. Dependence on waste pper to produce pulp was reduced from 100% to an effective mix of waste paper and agricultural residues. 2. Inorder to reduce fuel cost per tonne one additional fluidised bed boiler was installed. apart from the above cost reduction measures, capacity was also increased from 4500 MT per annum to 7500 MT per annum. These changes were implemented at a cost of Rs. 212 lakhs out of which Rs. 149.80 lakhs were financed by way of term loan by PICUP under its Equipment Refinance Schemes.