The MP apex level empowerment committee on investment is likely to clear Ludhiana-based textile major Nahar Group’s Rs 300 crore project this month.
The conglomerate, which has proposed to set up a plant for manufacturing bi-axially oriented polypropylene films near its Mandideep facility, has asked for concessions including interest subsidy.
The company had signed a deal with the state government for facilities at the Gwalior investment meet last month.
“The new unit will cater to the needs of packaging units,” Dinesh Oswal, director, Nahar Poly Films Ltd (formerly Nahar Investments and Holdings) told Business Standard.
The company will use its own land for the purpose, which is in the vicinity of its existing facility.
“The proposal is with the apex empowerment committee on investment. It will be discussed and most likely cleared at the next meeting, which may take place this month,” a senior government official said.
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The company, according to Oswal, will finance the project by means of internal accruals and loans from banks. The unit will have a manufacturing capacity of 30,000 tonnes per annum. Work is expected to commence soon and is likely to be completed in a year. A small patch of government land is also to be given to the company for the project.
“We have forwarded the case to the Raisen (district) collector,” a government official said, adding “facilities like incentives and interest subsidy will be given to the company in accordance with our industrial policy”.
Nahar earlier had a plan to enter the non-woven textile segment but the plan was put on the backburner and now the land will be used for this purpose.