ITC plans 3,000 crore Indian rupees paper mill expansion in Bhadrachalam, India, as part of strategy to double annual production capacity to 1 million tonnes within five years
September 27, 2011
– Indian conglomerate ITC Ltd., headquartered in Kolkata, India, is planning a 3,000 crore Indian rupees (US$606.71 million) paper mill expansion in the town of Bhadrachalam as part of its strategy to achieve an annual capacity of 1 million tonnes within about five years, The Hindu reported Sept. 26.
Sanjay Singh, chief executive of ITC's Paperboards and Specialty Papers Division, said ITC was waiting for the Andhra Pradesh government to allocate 1,000 acres adjacent to the company's pulp and paper manufacturing site in the town.
Once the land has been allocated, ITC expects to secure the required clearances for the expansion, Singh said.
The expansion project would double the mill's annual production capacity to 1 million tonnes. In addition, ITC plans to invest 1,110 crore rupees in upgrading the existing mill.
To secure raw material for the expansion, ITC plans to develop 40,000 acres for forestry through social projects. Singh said that government restrictions prevent the company from owning land, so it has developed a system of encouraging local tribes to cultivate plantations through the Social Forestry Initiative.
Singh said ITC had helped develop plantations on over 110,000 ha. in Andhra Pradesh, Maharashtra and Madhya Pradesh.
The primary source of this article is The Hindu, Hyderabad, India, on Sept. 26, 2011.