Sanghvi to set up starch unit in MP

Unit to have an installed capacity of 40,800 tonnes.

Sanghvi Maize Starch, a unit of Dewas-based Sanghvi Foods Pvt Ltd, has proposed to set up a starch-producing unit with an investment of Rs 41 crore. The new unit will have an installed capacity of 40,800 tonnes of starch per annum and 18,060 tonnes of allied products.

A government source said: "The company has applied for concessions for the new unit. The apex empowerment committee on investment promotion will discuss the proposal soon."

The unit is likely to start commercial production by the end of this year. It will mainly produce starch, liquid gluten, animal feed gluten meal and germs. It will process 200 tonnes of maize per day.

"The Sanghvis will raise a Rs 27-crore term loan and Rs 4.50 crore non-secured loans and other internal arrangements for the project," said the source.

The company has asked for exemption from commercial tax or value-added tax for a period of seven years; exemption from mandi tax for seven years; interest subsidy at 3 per cent; land for the project at concessional rates; waiver from electricity duty and cess; exemptions from municipal and property tax for seven years; and free water supply.

Of the total maize-processing capacity of 3,700 tonnes per day in 17 units, Madhya Pradesh processes 450 metric tonnes a day in its three units. The Sanghvi unit will be the fourth to process close to 200 tonnes of maize. The company is likely to procure maize from nearby towns.

After a long gap, the apex level empowerment committee on investment will meet again on discussing various investment proposals.

However, according to the official source, a few cases have reached the committee for discussions on offering concessions, in accordance with the Industrial Promotion Policy 2004.

The regular meeting of the Project Implementation and Clearance Board has also not taken place for long, which is against the normal procedure of meeting on the first and third Tuesday of each month.