Swarnandhra Jute setting up unit in Srikakulam

Swarnandhra Jute Mills Pvt Ltd is setting up a jute fine yarn and jute fabric manufacturing unit at an investment of about Rs 8 crore. The company has acquired 14 acres of land at Pydibhimavarm in Srikakulam district, about 60 km from Visakhapatnam, for this purpose.

"We have already started the construction work and will begin production by July," B V Rama Rao, managing director of Swarnandhra, said.

Of the total project cost, promoters are pumping in Rs 2 crore while the remaining is being contributed by financial institutions.

"Initially, the plant capacity will be 15 tonnes per day. We plan to increase it by 60 tonnes a day within four years at an investment of around Rs 45 crore," he said.

"We also plan to export our products to Bangladesh and other countries after the expansion," he added.

Rao said that the Centre was giving Rs 50 lakh as subsidy while the state government was providing 25 per cent rebate on sales tax and 75 paise concession on each unit of power consumption.

"The company would import the main raw jute called 'golden fibre' from Bangladesh for which it has tied up with a few Bangladeshi suppliers," he said, adding, "We will provide direct employment to 300 villagers and will develop a few downstream cottage industries based on our products in the surrounding villages."