470 1. Introduction Paper is one of the essential commodities for daily use and paper industry forms the core sector of our country’s economy. Paper and paper products contribute to other sectors also such as education, communication and product packaging. The uses and applications of paper and paper products are limitless and new specialty products are continuously developing. Despite the revolution in electronic media and tough competition from computers and internet connectivity, the demand forecasts clearly indicate rise in requirement of paper and paper products in the years to come. With rise in its literacy rate, per capita consumption in India is expected to double within next 10 years (Mishra, 2011). Indian paper industry has a tough task ahead and has to gear itself for facing the growth in demand. However, there are several bottlenecks the industry has to overcome and one of the biggest hurdles is the availability and utilization of inputs to match quality with cost effective production. 2. Current Scenario of Paper Production The global consumption of paper is 400 Mt yr -1 and expected to increase its consumption to 500 Mt by 2020 (WWF, 2010), while in India, the consumption of paper and paper board is estimated to be double from 10 Mt yr -1 by 2020 (Mishra, 2011). Though the softwoods and hardwoods have desirable characteristics of fibres for pulp and paper making, over-exploitation of these woods for different purposes has resulted in continuous decline in their production from natural forests (Ashori, 2006; Sharma et al., 2013). Fig. 1 to 4 represent the global scenario of paper and virgin pulp production world wide and Fig. 5 represents the cost analysis of paper making (SFIF, 2011). Cellulose and Paper Division, Forest Research Institute (FRI), Dehradun has an impressive record in conducting research and development in the field of pulp and paper technology since 1909 when Sir William Raitt initiated studies on evolving an efficient Eucalypts in Pulp and Paper Industry Vikas Rana, Gyanesh Joshi, S.P. Singh and P.K. Gupta 20