APJDC to develop jute park near Vizag

Hyderabad: Andhra Pradesh Jute Development Centre Limited (APJDC), a special purpose vehicle promoted by jute business community in the state, will be setting up a jute park in Sabbavaram mandal of Visakhapatnam district at a cost of Rs. 1,000-mn.

The park will come up in 150 acres land, to be allotted by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC).

It will have four integrated mills that will process fine yarn, textiles and fabric among others to support the manufacture of diversified jute products by 90 small and medium enterprises that are expected to set up shop in the park, according to Mr. B. V. Rama Rao, vice-chairman and managing director of APJDC and managing director of Srikakulam-based Swarnandhra Jute Mills Private Limited.

The Vizag jute park will be one of the six to be established in the country as part of the Union textiles ministry's decision to promote diversified jute products. Work on the park will take off in February 2009 and will completed in two years from then.

Rao said the textiles ministry had agreed to provide a grant of Rs. 400-mn for the development of infrastructure facilities at the park, while the State Government will supply power at a subsidised rate of 70 paise per unit, reimbursement of stamp duty on land registration and hypothecation of deeds besides extending a three per cent rebate in interest on loans.

'The remaining Rs. 600-mn will be raised through various state government agencies and anchor partners,' Rao said, adding the park is expected to attract investments of Rs. 5,000-mn and has the potential to create direct and indirect employment for around 20,000 people.

At present, Andhra Pradesh accounts for 200,000 acre of crop under mestha (jute used for making gunny sacks and twine) primarily in the two districts of Srikakulam and Vizianagaram. The proposed park will also encourage the cultivation of mestha on a large scale, Rao said.