Bagasse usage as a cellulosic material for paper and newsprint making has been induced by the Government of India. The paper summarizes the relevant policies. Seven caselets pertaining to bagasse based paper and newsprint production have been analyzed. Quantities of i) residual bagasse without specific efforts, ii) residual bagasse with its drying and densification prior to use as energy for sugar making, and iii) surplus bagasse due to using coal as an alternative fuel have been assessed. These resulted in a reasoning that enhacing the quantity of residual bagasse through its drying and densification was the most viable alternative. It has also been reasoned that sustainable and tension free growth of paper and newsprint industries could be encouraged by i) encouraging integrated sugar-paper enterprises where the size of sugar and paper units should be at least 540,000 and 30,000-35,000 tonnes a year, respectively.