| A Project Clearance Investment Board (PCIB) meeting had observed that the company had withdrawn its investment plan on "account of delay from the government on land acquisition." |
| However, a company executive told Business Standard that inappropriate valuation of land forced the company to withdraw its plan. |
| "We have decided to drop investment in Madhya Pradesh on account of land issue. We have refunded our deposited money and have started investment in Punjab instead," said the executive. |
| After Pratibha Sintex, Nahar is the second big textile company that has withdrawn its plan to invest in Madhya Pradesh. Pratibha Sintex had dropped its proposed investment of Rs 600 crore in a terry towel project. |
| The PCIB had earlier given clearance for 3.5 Mw connected power load to Nahar Spinning Mills Ltd. The company had obtained all the necessary clearances from the state government to go ahead with its proposal to set up the Rs 233 crore unit in Simrai village in Raisen district except land acquisition. |
| The state's department of industry had requested the district collector to acquire the land for the firm. The company had demanded 36.99 acres of private land and 0.27 acres of government land. "The valuation was approximately Rs 16 lakh per acre against expected Rs 3-4 lakh per acre," the company executive said. |
| Nahar Spinning already has a unit in Mandideep near Bhopal that produces export-quality cotton yarn. The firm had also been given its sanction in principal for a power plant of 20 Mw. |
| The PCIB had also cleared exemption from entry tax on purchase of raw material for a period of 5 years and exemptions from electricity duty for a period of 7 years. Nahar had planned to add 25,000-50,000 spindles to its two assembly lines of 67,000 spindles in Mandideep by installing the new unit. |
| Nahar's Mandideep unit exports its yarn to the US, Germany, Russia, Japan and South Africa, among others. |
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