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ITC to mull Telangana govt's requests to takeover AP Rayons factory

The plant was closed due to losses and other reasons; state efforts to restart operations failed

BS Reporter  |  Hyderabad 

ITC Chairman Yogesh Chander Deveshwar
ITC Chairman Yogesh Chander Deveshwar

chairman announced on Monday that the company would consider Telangana government's request to participate in the revival of Ballarpur Industries(BILT)-owned rayon grade and paper grade wood pulp and paper manufacturing plant located in remote forest area in the state.

Previously known as AP Rayons Factory, the plant was inoperational due to losses and other reasons in the past. After the formation of the new state, Telangana government made an attempt to revive the plant by offering financial support to the factory management as hundreds of people were directly and indirectly dependent on the operations of this decade's old factory in Yeturunagaram agency area.

However the company failed to restart the operations as it faced raw material constraints since most of its raw material, eucalyptus plant, and bamboo that has to come from

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While participating in the launch of ITC's new super luxury hotel Kohenur in Hyderabad on Monday, Telangana IT and Industries minister K T Ramarao openly requested the chairman to consider reviving the unit.

ITC has its largest paper and paper board manufacturing unit located in Bhadrachalam forest area in Telangana and it has been engaged in plantation of bamboo and other trees across 7 lakh acres around that area under social forestry initiative.

Responding to the minister's request, Deveshwar said the company would consider the proposal if the state government comes forward with proper incentives. ITC managing director Sanjiv Puri later endorsed chairman's view while stating that they would examine the government's request.

First Published: Mon, July 02 2018. 20:39 IST