"Out of Rs 350 crore capital expenditure, Rs 170 crore will be financed through term loans under Textile Upgradation Fund Scheme (TUFS) and the remaining Rs 180 crore will be raised through equity," the company's Chairman and Managing Director M P Agarwal told PTI.
The company would set up a new unit at Malwan in Uttar Pradesh to increase its capacity to 15,000 tonne per annum from the existing 3,000 tonne per annum.
The new facility would start operations by March 2009, he said.
The existing Malwan plant manufactures terry towels, denim fabrics, bottom-weight fabrics, nylon fabrics and home furnishing fabric.
The capex plan also includes setting up an agri-based captive power plant at Malwan with a capacity of 12 Mw.
"The new captive power plant at Malwan will produce electricity through rice husk. The plant will ensure uninterrupted power supplies at a lower cost," he said, adding that it would start electricity generation by March.
