Birla Corp wants sops from MP govt

To speed up its Rs 275 crore investment in the capacity expansion of its cement division, MP Birla group flagship Birla Corporation has asked for sops and concessions from the Madhya Pradesh government for its Satna Cement Works.

Currently managed by Rajendra Singh Lodha, the company has asked for exemption from entry tax (levied at 2 per cent) on raw material, incidental goods, and capital goods for a period of ten years.

A government source told Business Standard, "The apex committee on investment has decided to offer concessions in accordance with the Industrial Promotion Policy 2004."

Company officials were not available for comment.

The company has also asked for commercial tax concession in the form of an investment promotion scheme to an extent of 75 per cent of the total investment, for a period of 10 years.

"The company will be offered tax concession in the form of investment promotion incentives for a period of five years because Satna is a backward district under Category A. However, an additional period of two years has been considered for the company," the source said.

The company also wants a cut in the electricity cess from 10 paise per unit to 5 paise per unit, royalty on limestone, and exemption from entry tax on limestone and wants the limestone excavation area to be brought under the Municipal Corporation to exempt it from entry tax.

"Both the demands of exemption from entry tax and the cess have not been granted since the Industry policy does not have any such provision," the source said.

However, the company is entitled to interest grant on certain conditions in accordance with the industry policy. The expansion will take at least one year. The company had also set up a captive power plant, said the source.

Commissioned in 1959, Satna Cement Works (SCW) manufactures general purpose cement OPC (ordinary Portland cement) 33G, 43G and 53G.

The company also manufactures PPC utilizing fly ash, received from NTPC plant at Unchahar (Uttar Pradesh) and also special purpose cements like Sulphate Resistant Portland Cement, Low Alkali cement and cement for Railway sleepers.

The company manufactures cements under the brand name "Birla Cement Khajuraho" and "Birla Samrat" and has an export client base in Nepal and Bangladesh under the brand name "Camel" & "Royal Tiger".