Decks have been cleared for the expansion project of ITC Paperboards and Specialty Papers Division (PSPD) in Andhra Pradesh.
The State Wildlife Board, which met under the chairmanship of chief minister N Kiran Kumar Reddy on Tuesday, has decided to recommend allotment of 300 hectares for setting up a pulp and paper manufacturing unit by ITC.
The land sought by ITC is in Kistasagar Reserve Forest area in Palvancha division of Khammam district. Hence, it requires Wildlife Board’s clearance. The company’s existing unit is in the same district at Bhadrachalam.
ITC executive director Pradeep Dhoble told Business Standard that PSPD proposed to expand its capacity from 500,000 tonne to one million tonne a year with an investment of about Rs 3,500 crore.
According to an official press release, the Khammam district conservator of forests has recommended allotment of land for the project with certain conditions like retention of growth above 90 cm girth of all species and bamboo except eucalyptus and annual payment of 1 per cent of profit after tax or Rs 50 lakh a year.
While 50 per cent of the money thus realised from ITC would be utilised for development of the nearby Kinnerasani sanctuary, the remaining amount would be for development of flora and fauna around 10 km from the land earmarked for the industry.
The release stated ITC would be directed to make a one-time deposit of Rs 8 crore and the interest derived from this capital would be utilised for developing the forests and wildlife in the vicinity of the factory.