Companies

Ballarpur Industries unit in Telangana to get Rs 30-cr subsidy annually

V Rishi Kumar Hyderabad | Updated on January 22, 2018 Published on December 15, 2015

The Telangana government has offered subsidy worth Rs 30 crore per annum to Ballarpur Industries Ltd to restart operations at the company’s Kamalapuram unit in Warangal district of the State.

The papermaker had temporarily shut down its unit due to adverse global and Indian market conditions for rayon grade pulp and viscose staple fibre manufactured at the plant.

The Telangana government has agreed to extend incentive of Rs 30 crore to the company for resuming manufacturing at the plant. This includes a subsidy of Rs 9 crore per annum on supply of power and Rs 21 crore subsidy per annum on wood pulp.

B Hariharan, Group Director, Finance, in the filing made with the BSE, has informed that the subsidies are subject to completion of certain formalities and conditions. The State will extend this subsidy to the company for seven years.

The proposals include a detailed revival plan and commencement of operations within a year to claim the incentives.

The Government decision comes in the backdrop of the Chief Minister K Chandrasekhar Rao deciding to revive the project to support the employees and their families. Leaders from Warangal district met the Chief Minister and thanked him for extending the subsidy.

The State government has said that about 2,000 employees and workers in Ballarpur Industries would benefit from the revival of the unit.

The Telangana government is also seeking to revive The Sirpur Paper Mills located at Kagaznagar.

Published on December 15, 2015
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