New steel plant in Kutch
By Poonam Singh
Sumeet Industries Ltd, the Surat-based textile company, plans to diversify. The first of the two-phased diversification includes setting up an 80,000-tonne capacity steel plant in Kutch district of Gujarat. The steel plant will consist of an indexation furnace and rolling mill. The cost of this project is Rs 40 crore out of which Rs 15 crore is from internal resources. For the balance sum the company has approached financial institutions like BoB and SBI.
Land for the project has been already acquired and construction work is likely to start by the end of March 2005. Machinery for the plant will be procured from Electrotherm India Ltd.
The project will be completed by November and commercial production will start by December 2005 to get excise benefits. Thw project will seek five years excise duty exemption and seven years sales tax exemption under 'Special Exemption Kutch' provided by the Centre for industrial development of the district. Phase-II involves setting up a coal-based captive power plan
(21 Feb 2005)