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Rs 700 cr rayon plant proposed by Grasim in Andhra Pradesh

15 Nov '05

2 min read

Grasim India of Aditya Birla Group is proposing to establish Rs 700 crore greenfield rayon fibre plant in Andhra Pradesh.

Group executive president S K Saboo and other senior officials of Grasim had negotiated with Andhra government on the possible location of the said plant and infrastructural needs in the first week of this month. The Andhra Pradesh industries department issued a letter of consent to the company offering several facilities needed for the setting up of the plant, said media persons.

The company has pleaded for 370 acres in east Godavari district and 413 acres near Kothagudem in Khammam district. Grasim officials have inspected possible locations in east Godavari and Khammam districts.

The government also has recommended some sites such as the coastal town of Machilipatnam for the benefit of trouble-free waste disposal. The company has not yet decided the site.

Company is planning to build up a plant with the capacity of 240 tons of staple fibre per day. For this, company would directly employ approximately 600 persons and indirectly employ more than 2000 persons.

The company intends to import pulp for the plant from Canada and elsewhere, however, collaboration with the state forest department for the supply of wood required for making pulp has not been excluded.

This action is likely to heighten the confidence of the Andhra Pradesh government, which has recently offered an exclusive textile policy providing several incentives to the textile and garment units for utilising global export opportunities in this industry.

The Andhra government announced a special package of incentives to big projects with investments over Rs 100 crore or to those companies, which generate employment for more than 2,500 persons.

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