Hastings plans jute park at Shaktigarh

Kolkata-based Hastings Jute Mill (HJM), a division of jute export house Murlidhar Ratanlal (MREL) is setting up a jute park at Shaktigarh in Burdwan district, 110 km from Kolkata, at a cost of Rs 33. 65 crore on a 25-acre land.

A special purpose vehicle (SPV) called Shaktigarh Jute Park Infrastructures Ltd (JPIL), has been formed with HJM as the anchor investor and major stakeholder along with five other jute diversified production centres (JDPCs) to set up the unit.

The debt-equity ratio of the SPV has been pegged at around 1:1.

While the promoters contribution is Rs 9.15 crore, which is 27 per cent of the project cost, Jute Manufactures Development Council (JMDC) has promised a grant of Rs 7.5 crore which is another 22 per cent of the remaining projected investment.

The SPV will take term loans of Rs 17 crore, almost 51 per cent of the project cost, from banks and financial institutions (Fis)

“As the land deal is almost clinched we will shortly start construction work for setting up the jute park in the Burdwan-Memari belt. Other facilities from the government are also in line", said Sanjay Kajaria, director of HJM.