Katarias' Rs 44 cr expansion plan in limbo

Kataria Industries Pvt Ltd, which has proposed to invest Rs 44 crore in setting up a steel wire and plastic unit in Ratlam, is still waiting for clearances on various issues from the Apex Empowerment Committee on Investment and the Investment Promotion Board.

The two government bodies had not organised their regular meetings for two months, government sources said. And if there was any meeting, the investment proposals were not discussed.

The Katarias have reportedly arranged for Rs 26 crore from Uco Bank as term loan and has acquired land for the proposed investment.

The Ratlam-based Sunil Kataria and Arun Kataria-promoted firm also has interests in steel and copper wire production.

The new facility would have a capacity of producing 144,000 metric tonnes of wire a year, and 9,600 metric tonnes of plastic products, said a government official, adding, the firm will make plastic films, nylon films, woven sacks and fabricated boxes, polyester films and polyethylene pipes.

"The company is expecting to complete construction by December this year and start production," said the insider. The investment will generate at least 450 jobs.

The firm has asked for concessions offered to those firms with a Rs 25 crore turnover, on capital investment subsidy, concession in sales tax and entry tax of raw material, and speedy clearances of government proposals.

"The board meets on the first and third Tuesdays of each month; a meeting was organised on May 30 but the apex committee, which looks after proposals of more than Rs 30 crore, is yet to hold a meeting. The proposal is likely to be discussed in the next meeting, which will take place soon," said a senior government official in the department of industry.

He further said, "Since the Industrial Promotion Policy 2004 is yet to be revised, the meeting will decide on the proposal accordingly. There may be changes in sops and concessions."

The Katarias are known for their jewellery work in Ratlam, a place which is popular for its gold jewellery designs.