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Ballarpur Industries Ltd has been extended a subsidy of ₹30 crore per annum for seven years by the Telangana government to restart operations of the company’s Kamalapuram unit in the Warangal district of the State.
Shut downThe paper maker 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 ₹30 crore for the plant and this includes a subsidy of ₹9 crore per annum on supply of power and ₹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.
Government decisionThe Government decision comes in the backdrop of the State Chief Minister K Chandrasekhar Rao deciding to revive the project at any cost to support the employees and their families.
The State government has mentioned about 2,000 employees and workers in Ballarpur Industries will benefit from the revival of the unit.
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