Bheema Cements, a victim of power shortages, and facing market and financial losses, will get support for revival from the Telangana government, with a package and a set of conditions.

The company, incorporated in 1978, which has a plant at Ramapuram village in Suryapet district with a peak installed capacity of 9 lakh tonnes per annum, became sick around 2014 and closed operations due to disconnection of power supply.

In addition, its three mining leases for limestone in Ramapuram and Vepalamadhavaram villages of Mellacheruvu manda (earlier Nalgonda district), were also declared lapsed.

The company had taken up investment of ₹15 crore for expansion in 2010, and ₹12 crore for the construction of an under-passage bridge for a conveyor from mines to factory.

However, adverse conditions led to a bad phase, resulting in financial losses, and the company ended up in default of payments of ₹17.14 crore to the Sales Tax Department, ₹4.66 crore to mining and ₹12.60 crore to the electricity department, which led to its closure.

After the formation of Telangana and under the new industrial policy, the State government constituted a committee in 2016 to review the revival request of the company originally promoted by K Radhakrishnaiah and Sikakollu Subba Rao with equity participation by the Andhra Pradesh Industrial Development Corporation.

The government, after evaluating the recommendations of a Cabinet sub-committee, recently took a positive view.

The government has put forth conditions, which include that the company should pay ₹10 crore immediately to the Commercial Tax Department and the balance in 36 interest-free monthly instalments.

The management of Bheema Cements assured the government to initiate steps to revive operations.

It assured an annual turnover of ₹350 and jobs for 1,000 both directly and indirectly.

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