MP nod to Trident's Rs 1,000-cr unit soon

The proposal of the Trident group-promoted Abhishek Industries to set up a sheeting fabric unit in Budni (Sehore district) with an investment of Rs 1,000 crore is likely to get the Madhya Pradesh government's clearance soon.

The state government has identified almost 1,000 acres near Budni, which will soon be acquired for the company.

Senior executives of the company and officials of the Madhya Pradesh State Industrial Development Corporation (MPSIDC) and Trade and Facilitation Corporation (TRIFAC) have discussed the issue.

"Company executives had a meeting with Chief Minister Shivraj Singh Chauhan on June 19," a government source told Business Standard, adding, "Their plan will take shape soon. The process of land acquisition has begun although the company may have to shell out more as compared to that paid by the Vardhman Group, which also has given final shape to its plan to set up a Rs 1,100-crore unit in Budni."

The source said the chief minister had assured the company of extending all possible support.

Earlier, the company had a plan to set up the unit in a proposed textile park in Satlapur near Mandideep. But the area is facing an acute water shortage. However, the Budni site has sufficient water since it is located near the Narmada river.

"The company is likely to scale up the quantum of its investment, keeping aside Rs 200 crore for social activities, etc," a company executive had told Business Standard, adding, "initially, we will invest Rs 850-1,000 crore, which may go up and will create direct employment for more than 3,000 people." The unit will have 200,000 spindles.

The government insider also said: "A land area of 1,000 acres will be acquired for the company soon. The company does not have very specific demands and the government is optimistic about the project. We hope the firm is able to complete construction in a year."

The company will set up a sheeting fabric, terry towel and yarn unit. It will be a 100 per cent export-oriented.

The MPSIDC, which is deep in the red, is likely to drop its plan to set up the Satlapur industrial growth centre as a textile park since there is an acute water shortage.

A number of textile manufacturers have shown interest in the park but there was no assurance from the state government. And water, according to industry sources in Mandideep, is too costly at Rs 12.50 per kilo litre.

Further, roads to Satlapur and Mandideep and those in the industrial town are in very bad shape. And, the frequent power cuts make it an "investment-proof" site. Since 1996 no new investment has taken shape in Mandideep.