Sanghvi group to set up flour mill

Dewas-based newly registered Grain Milling Company Pvt Ltd has proposed to install a roller flour mill to produce 75,000 metric tonnes of atta per annum. The unit will produce 45,000 metric tonnes of gram atta or besan per annum.

The company, promoted by the Sanghvi group, which has plans to set up a starch unit, will reportedly make an investment of Rs 18 crore in the unit.

The company will make financial arrangements from loans: Rs 16 crore (Rs 11 crore term loans and Rs 4.50 crore non-secured loans) and will create 125 direct jobs.

"The company has asked for sops and concessions from the apex empowerment committee on investment by considering it as a mega investment proposal," said a government source.

The demands include exemption from entry tax on raw material, exemptions from commercial tax and value added tax for a period of seven years, free water supply, interest subsidy etc. The proposal is likely to come up in the next meeting of the committee," said a government source.

The unit, according to source, will be installed this year. It will produce wheat flour at 250 tonnes per day and 150 tonnes of besan (roller mill) per day.

The committee considers food-processing proposals more than Rs 10 crore as mega investment proposals vis-à-vis Rs 25 crore in other sectors. Madhya Pradesh Industry policy offers assistance in land acquisition, exemptions from mandi tax on raw material, exemptions from cess and electricity duty.

Despite there are six food parks in the state, companies have skipped them in absence of proper planning and ambiguity from the state departments.

Despite "Single Table" concept developed by the ruling BJP government for clearance of projects in food parks, a number of departments are involved in clearance process as a result barring Borgaon Food Park near Chhindwara (bordering Maharashtra), other food parks have attracted hardly any investment.

The Sanghvis investment is the second big investment after an Indore-based firm Kant Biscuit's Rs 40 crore investment in making processed 'Sabji-Paratha.'