Universal Cables plans upgrade
| Rs 61-crore investment plan to be funded by term loans and internal accruals. | |
| MP Birla group company Universal Cables Ltd is planning a technology upgrade of Rs 61 crore in its Satna (Madhya Pradesh) facility, to manufacture cross-linked polyethylene cables. | |
| The company will adopt vertical continuous vulcanisation (VCV) technology for the first time in India. The state-level investment promotion empowerment committee, an apex body, has cleared the company's proposal. | |
| Cross-linked polyethylene cables or XLPE cables have now replaced paper-insulated cables in the industry. With the government trying to make India a power hub on demand by 2012, the company expected a profit of Rs 29 crore, within six years of the upgrade, sources told Business Standard. | |
| "Chief Minister Shivraj Singh Chauhan has cleared the proposal to give necessary concessions under the Industrial Promotion Policy, 2004, for the proposed Rs 61-crore investment of the firm," a source, who participated in the meet, told Business Standard. | |
| The company has plans to adopt VCV technology for manufacturing XLPE power cables in two phases in the existing premises of its Satna facility. | |
| Initially, in phase I of the upgrade, the company will start the production of cables up to 132 Kv, and then switch over to the 400 Kv range in phase-II. Besides, the company also has a presence in the field of cables, conductors and capacitors. | |
| "The company will arrange for Rs 47 crore as term loan, and Rs 16 crore from internal accruals. It has requested the government for provision of sops under the mega-project status, since the upgrade involves modern technology and management," a source said. | |
| The company claimed the proposed investment would gear up India for the future needs of XLPE cables, which were being imported at present. | |
| The company has demanded an industrial investment promotion subsidy for 11 years on sale of furnished goods; waste and scrap, produced during the process of manufacturing. | |
| Further, UCL has asked for exemption on commercial tax and value-added tax on the purchase of raw material, and exemption on entry tax. It has also asked for capital investment subsidy, interest subsidy, transport subsidy and power subsidy. | |
| "The committee had considered the proposal and has cleared it, so that it can take shape as soon as possible," said sources. | |
| UCL manufactures PILC cables up to 33 Kv, XLPE cables up to 145 Kv, high temperature fluro-plastic cables, winding wires and flat cables, PVC cables up to 11 Kv, elastomeric cables up to 30 Kv, mixed dielectric, and power capacitors up to 145 Kv. | |
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First Published: Jan 21 2006 | 12:00 AM IST