Nahar's MP plan shaping up

Jawahar Oswal-promoted Nahar Spinning Mills' proposal to set up a Rs 233 crore unit in the Simrai village of district Raisen is likely to take shape soon.

The MP government has considered some of the demands of the company on land acquisition, and exemptions from electricity duty and entry tax on raw material.

The company, which already has a unit in Mandideep near Bhopal, will produce export-quality cotton yarn.

The company has asked for 36.99 acres of private land and 0.27 acre of government land from the state government. The apex committee on investment has given the nod for this.

"The district (Raisen) collector will acquire the land soon at market rates," a government source said.

The committee, according to official sources, has also decided to offer exemption from entry tax on raw material for a period of five years, in accordance with the Industrial Promotion Policy, 2004, and an electricity duty waiver for a period of seven years.

The group wants the proposed unit to be out of the ambit of the Madhya Pradesh Industrial Relations Act, 1960.

According to a government official, the matter is sub-judice because there has been an appeal against a state government notification of October 10, 2005, which had put eight kinds of industrial activities, including those of textiles, out of the purview of Act. The committee will wait for court orders in this regard.

The company has two assembly lines of 67,000 spindles' capacity in Mandideep and the proposed unit will initially have 25,000 spindles. It has also proposed to set up a captive power unit and asked for the sanction of a power load of 3.5 Mw.

"The committee has asked the company to apply to the Project Clearance and Implementation Board since consent has been given by the board during its May 9 meeting," said the government source.

The 100 per cent export-oriented Mandideep unit of Nahar exports yarn to the United States, Canada, Germany, Holland, Russia, Japan, Australia, New Zealand, Thailand, Hong Kong, Singapore, Taiwan, South Korea, Malaysia, Mauritius, Dubai, Bahrain, South Africa, Egypt and Bangladesh. The company also has plans to enter the non-woven garment segment.