Agrawal to invest Rs 113 cr

Agrawal Indotex will invest Rs 113 crore in Madhya Pradesh to diversify and expand capacity.

The company, which has its manufacturing unit in Khandwa (West Madhya Pradesh), manufactures polyester viscose synthetic blended yarn.

Although company officials could not be contacted for details of the plan, a government source told Business Standard that the MP government had agreed to offer land adjacent to the firm's Cheggaon Makhan (Khandwa) unit.

The company has asked for 70-80 acres, of the total 85 acres of land available, at 25 per cent of the prevailing prices.

Any industrial investment of more than Rs 100 crore (up to Rs 200 crore) is entitled to concession up to 25 per cent of the land price for 15 acres or less.

The company wants the government to levy electricity duty at par with that offered in special economic zones for 10 years because power is costlier and is available at Rs 4.50 per unit against Rs 3.50 per unit in Maharashtra and Rs 3.70 per unit in Gujarat.

The state government's Apex Level Empowered Committee on Investment Promotion had rejected this demand, the source said, adding, although the state industries department had advised the committee considering the demand in the light of the sops offered to units in backward areas in Maharashtra and Gujarat.