The Hindu : Business : Five cos. sign MoU with Maharashtra Govt.

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Tuesday, Jun 19, 2007
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Five cos. sign MoU with Maharashtra Govt.

Large projects will entail an investment of Rs. 2,000 crore

The sites include Igatpuri, Lonand, Kagal and Patalganga
Modi Fibres’ project is the largest among the five projects

— PHOTO: PTI

VIBRANT INDUSTRIAL SCENE: V. K. Jairath (left), Principal Secretary, Industries Department, Government of Maharashtra, and Sumant Singhal (right), Director, Jindal Polyfilms, exchange documents after signing an MoU between the State and the company as Chief Minister Vilasrao Deshmukh (second from right) looks on in Mumbai on Monday.

MUMBAI: Five major industry groups have signed memoranda of understanding (MoUs) to set up large projects in Maharashtra, entailing an investment of Rs. 2,000 crore.

The heads of these groups signed separate MoUs with the State government at a formal function here on Monday attended by Chief Minister Vilasrao Deshmukh.

Industries Principal Secretary V K Jairath signed the MoUs on behalf of the Government.

Projects in backward region

The projects that will come up in some of the industrially backward regions of the State would manufacture viscose fibres, different grades of steel, high-end fabric, BOPP film and high-end technology products.

All the five companies have been offered a host of incentives. Mr. Deshmukh said the objective behind inviting these companies to set up their units was to direct the industrial growth to different corners of the State.

The proposed investment sites include Igatpuri, Lonand, Kagal and Patalganga.

The biggest project that was announced on Monday was that of Modi Fibres, which in alliance with Lenzing Group, Austria, the largest manufacturer of viscose fibres in the world, would produce 80,000 tonnes of viscose fibres at Patalganga for a total investment of Rs. 750 crore. The company said the demand for viscose fibre was on the rise globally adding that India had only one viscose fibre manufacturer at present. The production at the new plant is scheduled to start after construction period of two years.

Jabil, a global leader in electronic product solutions, has projected to invest $100 million. This Florida- based company, also listed on the NYSE is the third largest electronic manufacturing services provider in the world.

It has projected to manufacture high technology products for export as well as domestic market. It expects to recruit over 10,000 employees over the next five years, according to a press release.

Sona Alloys, promoted by the Gujarat-based Jain group, which pioneered ship-breaking will be setting up a greenfield integrated steel plant at Lonand with an investment of Rs. 350 crore.

The company will manufacture three lakh tonnes of various grades of steel including stainless steel, alloy steel, mild steel to meet demand from industries including construction, foundries and automobiles. The company will start production by December next year.

The Ludhiana-based Oswal group will set up a unit in alliance with F M Hammerle of Austria at Kagal near Kolhapur to make shirt fabric.

The company will invest Rs. 295 crore in the plant with a capacity of 12 million metres of high-end shirting fabric, which will be exported to Europe, the U.S. and other Asian countries, said the release.

Jindal Poly Films, which already has a plant at Nashik to make BOPP films, will be increasing the capacity from 45,000 tonnes to 1.80 lakh tonnes.

The company will be making additional investment of Rs. 125 crore. Incidentally, the company’s existing plant at Nashik is presently the largest single location polyester and BOPP plant in the world, it added. — PTI

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