Delay in revival: KTR warns BILT of scrapping sops, concessions

Highlights

  • Co assures commercial operations by Aug 2020; If fails to honour new deadline, Telangana govt will handover unit to new management, asserts Industry Minister

Hyderabad: Telangana Industry and IT Minister KTR expressed displeasure over the slowdown in revival works on Ballarpur Industries Ltd (BILT). The minister is angry over the non-completion of works as scheduled.

BILT management has requested for a new deadline for commencing commercial operations by August 2020. KTR warned the company management about the possible cancellation of sops and concessions if the production does not take off by the new deadline.

However, the Industry Minister insisted on a letter of assurance on completion of the revival of BILT. Further, the company has also agreed on Diwali advance of Rs 10,000 to employees.

Interacting with the representatives of BILT, KTR said, “BILT has been missing several deadlines. Now, it seeks another deadline of August 2020. If it does not honour the commitment to commencing commercial production, we won’t hesitate to cancel all sops and concessions. The government may hand over the BILT unit to the new management. The Telangana government has awarded several sops to the company. It’s better to begin company machinery revival works and make workers part of it.”

Responding to this, BILT COO Nehar Agarwal said that they “regret over the slowdown in revival works. The works began very late due to some unavoidable reasons. We assure that commercial production by August 2020.” The Industry Minister asked Industry Secretary Jayesh Ranjan to review the progress of revival works from time to time.

Ballarpur Industries is located at Kamalapur in Warangal district. Agarwal, along with company CGM Hariharan and other officials met KTR and briefed him about the progress of revival works.

Expressing dissatisfaction over delay in revival works on BILT, KTR asked the management to submit a letter of assurance on completion of the project. He directed the Industry Department officials to review the progress of BILT as per the new deadline.

“The Telangana government has given several sops and concessions to BILT for generating employment opportunities and welfare of employees. You know very well how much interest the Telangana government has in reviving the company. The Telangana government is firm on protecting the welfare of workers and their interests. I ask you to submit a letter of assurance on the new deadline to begin the commercial operations by August 2020,” said KTR.

The Industry Minister also reviewed the agreement on pending salaries. “We agreed on the payment of pending salaries. We’re ready to give Rs 10,000 as Diwali advance to employees. Our consultants prepared a report and submitted it to banks for raising additional investment,” said Agarwal.

“As part of the company revival, IT networking works are in progress. We’re confident that the commercial operations will begin by August 2020,” said Hariharan.

About 750 families have been eagerly waiting for the revival of BILT ever since its closure in 2014. BILT was manufacturing rayon grade pulp and paper. Telangana government authorised several sops for the recovery of the sick unit in September 2018. BILT management is allowed to pay commercial tax dues of Rs 34.50 crore in instalments.

As a result, BILT management will get a consolidated subsidy of Rs 21 crore annually for seven years. It includes the power subsidy is Rs 9 crore per annum and Rs1, 000 per 1.5 lakh coal consumption per annum.

Also Read: https://newsmeter.in/telangana-govt-calls-for-balancing-act-in-realty/

Dasari Sreenivasa Rao

Dasari Sreenivasa Rao

Dasari Sreenivasa Rao is a freelance journalist with 26 years of mainstream media experience in Hyderabad and Dubai. He was Business Editor at The Pioneer and Spl Correspondent at Deccan Chronicle and The Hans India. Earlier, he worked for prestigious media brands including ToI, Indian Express (Bombay), SPG Media and Business Standard in Hyderabad.

Leave a Reply

Your email address will not be published. Required fields are marked *