Grasim Industries has received green nod for expanding the production of viscose staple fibre and captive power at Kharach unit in Bharuch, Gujarat, that would entail an investment of Rs 18 billion, according to an official source.
The company has four VSF (viscose staple fibre) plants in India, of which two are in Gujarat, one each in Kharach and Vilayat in Bharuch district. Last month, the company had received the environment clearance for expansion of Vilayat plant.
Now, the company's Birla Cellulosic unit has received the green light for expansion of its Kharach plant.
In a letter issued to Grasim Industries, the union environment ministry said it has given clearance to the company's proposal for expanding Kharach unit subject to compliance of certain conditions.
The company plans to raise the production capacity of VSF from 1,27,750 tonne per annum (TPA) to 2,33,600 TPA, while that of the captive power plant from 25 MW to 45MW.
According to the proposal, Birla Cellulosic will undertake the proposed expansion within the existing plant area in 242.81 hectare. The estimated project cost is Rs 18 billion.
The company wants to expand its VSF production capacity to meet the increased demand of man-made fibres in the country.
The other products presently manufactured include sulphuric Acid, carbon disulphide and sodium sulphate. The Solven Spun Cellulosic Fibre unit and coal-based captive power plant are yet to be commissioned.