Naradhana project to be 2nd plant of Vertex Spinning
26 Feb '08
5 min read
2. GOM has granted the following incentives to VSL:
2.1 Electricity Duty exemption for the period of 7 years from the date of commencement of project.
2.2 100% exemption from payment of Stamp Duty.
2.3 Industrial Promotion Subsidy (IPS) equivalent to 100% of "ELIGIBLE INVESTMENTS" made with effect from May 08, 2007 and within such a period stipulated in the package scheme of incentives 2007 commencing from the date of signing of this MOU.
The IPS will however be limited to 100% of VSL's eligible investments less the amount of benefits availed at Sr. No. 2.1 & 2.2 as per the period prescribed therein or to the extent of taxes paid to the State Government within a period of 7 years whichever is lower.
2.4 75% reimbursement of expenditure incurred on account of employer's contribution towards Employees State Insurance (ESI) and Employees Provident Fund (EPF) for a period of 5 years limited to 25% of FCI.
Expenses on the preliminary / and preoperative expenses as well as technical know-how fees limited to 10% of eligible investments would be admissible for considering investment eligible for IPS.
Speaking at the function, Shri Suresh Sharma stated that "Cotton yarn and Dyed & printed cotton fabric occupy an important and growing segment of the textile industries in India as well as Foreign Markets.
Our company is developing the cotton yarn keeping in mind to assist the farmers of this Green field area and to productionise the new range of Suiting Shirting's and Dress materials.
Shri. Suresh Sharma said that our group has esteemed history with the state tar last 15 years and this state has been its home all the time, The State Government's down to business support and the cheering investment environment were major factors in the pronouncement to set up this green field capability at Naradhana Industrial area, Dhule.
He mentioned that the products which are to be manufactured at this new plant will assemble the needs of the market in upbringing friendly support to the close by farmers.
He further stated that Vertex Spinning Ltd, is a profit making company listed on the Bombay Stock Exchange and at present the Company is engaged in the manufacture of Acrylic yarn and blankets and the new products are expected to add drastically to the already mounting market of the Company (both domestic and international).
The Vertex Spinning Ltd project of Rs 512 Crores will be funded from banks, public and internal accruals. The evaluation of the project has been completed by Syndicate bank. Nariman point, Mumbai.
The project is estimated to create direct / indirect employment opportunities to 2800 persons. The commercial production of this plant is expected to begin by early 2009. The plant is being set up with a capacity to manufacture 24000 MT 30s / 40s cotton yarn per annum.
Vertex Spinning Ltd already has one plant in the state of Madhya Pradesh at Pithampur, Indore. The Naradhana project will be the second plant of Vertex Spinning Ltd. The factory building is already in construction."
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