Companies

Buoyed by Sirpur Paper bailout success, Telangana govt seeks to revive BILT unit

V Rishi Kumar Hyderabad | Updated on August 07, 2018 Published on August 07, 2018

A concerted effort is on to revive the ailing BILT paper unit (formerly AP Kamalapur rayon unit) in Jayashankar Bhoopalapally district of Telangana.

Buoyed by the success of facilitating the takeover of Sirpur Paper Mills Ltd by Harsh Pati Singhania-promoted JK Paper Ltd — through NCLT approval of a resolution plan backed by the State’s special incentive package — a recent meeting of the State with the BILT management has rekindled hopes of revival of the unit.

During the meeting with Kadiam Srihari, Telangana’s Deputy Chief Minister, and KT Rama Rao, Minister for Industries and IT, the BILT management was assured that the State government would back its revival plan with an incentive package.

According to sources close to the development, the company was given a revival package in 2015 but that did not go through well.

Now the company assured the government it has done some internal analysis and is willing to come up with a revival plan, said the sources.

Takeover talks

Meanwhile, there were also efforts to talk with the likes of ITC to facilitate a takeover, the source added. The BILT management was asked to submit its revival plan and the nature of support it would like to receive from the State for follow-up action.

The unit makes rayon grade pulp used in the manufacture of viscose staple fibre and yarn. This is the only such plant in the country but was impacted due to slackened demand and the unit has been shut from 2016-17.

In the past too, State Chief Minster K Chandrasekhar Rao had written to his Andhra Pradesh counterpart N Chandrababu Naidu seeking supply of eucalyptus wood needed as raw material for the rayon unit for its revival.

The meeting with the BILT management and its consent to revive assumes importance in the backdrop of the State Industries Minister recently calling on ITC Chief YC Deveshwar to consider taking over and reviving the sick unit.

Speaking on the sidelines of an event here late on Monday, Rao said the ‘TS iPass’ policy seeks to encourage the setting up of new units, expansion of existing units and revival of sick units.

Apart from Sirpur Paper Mill, the Ramagundam fertiliser plant and Nizam Sugar Factory top the State’s revival agenda.

Published on August 07, 2018
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