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Ballarpur Industries Ltd is set to revive the ailing rayon and paper grade sick AP Rayon unit located at Kamalapur in Warangal district of Telangana. Backed by a slew of incentives cleared by the Telangana Chief Minister, K Chandrasekhar Rao, BILT has outlined plans to invest Rs 125 crore for reviving the unit, which has been closed from April 2014.
This development comes within months of JK Paper Ltd bagging the mandate to revive the sick Sirpur Paper Mills Ltd, following an NCLT order and supported by a package of incentives by the Telangana Government.
In an order issued today, Jayesh Ranjan, Principal Secretary, Industries, Telangana, said that the Government after careful examination of the issue, sanctioned a slew of incentives as the livelihoods of 750 worker families and hundreds of families indirectly are dependent on the factory.
Following the closure of the unit, the State Government had agreed to provide a package of incentives worth about Rs 192 crore spread over a seven-year period. In spite of it, the unit could not be revived.
With the BILT management coming forward after the State initiated moves to revive the unit at any cost, including exploring the possibility of handing over the unit to ITC for revival, a new package was announced.
Accordingly, a consolidated subsidy of Rs 21 crore per year for seven years will be released towards supply of pulp wood on the same terms and conditions agreed earlier. The unit will be extended a maximum subsidy of Rs 9 crore per annum for seven years and it would be extended a subsidy of Rs 1,000 per tonne for an average annul consumption of 1,50,000 tonnes over seven years.
As per the agreement, BILT plans to invest Rs 125 crore for doing modifications in plant and machinery and upgradation and 10 per cent of this investment will be extended as investment subsidy by the State.
The State Government has provided for some statutory dues from BILT. This includes a due of Rs 34.5 crore towards commercial taxes. Of this, Rs 10 crore has to be paid immediately and the balance in 60 instalments with all penalties waived of. The company will also pay dues of Rs 3.34 crore to Northern Power Distribution Company Ltd and Rs 4.75 crore to the forest department.
The Commissioner of Industries has been entrusted the task of formalising a binding guarantee from the company management. Also, it has been made clear that the concessions and statutory dues will come into effect from the date of commencement of commercial operations.
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