Trident proposal cleared

The MP government has cleared the Rs 957 crore proposal of Abhishek Industries, promoted by the Trident group, for setting up a sheeting and cotton yarn unit in Budni.

The apex committee on investment has offered investment promotion incentives equivalent to an amount of commercial tax or value-added tax to be paid by the company over a period of seven years.

The company, according to a government insider, has also been offered exemption on entry tax on raw materials, capital goods and construction materials, and materials for a captive power plant for a period of five years.

Further, the company's electricity duty and cess will be waived for 10 years. However, a notification in this regard is awaited.

But the state government has rejected the demand of the company on exemptions from stamp duty and registration fees, waiver on local tax payment for a period of 10 years, exemption from mandi tax on the purchase of cotton, exemption from service tax, and departmental fee on the acquisition of 889 acres of private land.

Another demand on exemptions from diversion charges on acquired land area has also been rejected. But the demand that the government construct a 40-feet-wide approach road is under consideration.

This would be the second project coming up in Budni, Sehore district, which is also the constituency of Chief Minister Shivraj Singh Cahuhan. SP Oswal-promoted Verdhman group has proposed an investment of Rs 1,400 crore in Budni and Mandideep for a cotton yarn-manufacturing facility by setting up an integrated composite mill.

"Trident is likely to increase the quantum of investment," said a government official, adding, "the proposal has been cleared by the apex committee on investment recently. The land acquisition process is on."

In March, a top executive of the company told Business Standard that the company would expand investment once the unit went on stream. "It will take us hardly one year to complete the project once government gives its nod," he said.