NEW DELHI: Diversified conglomerate ITC plans to invest Rs 1,540 crore in the next two years to expand production capacity for paperboards and specialty papers.
“We are creating two centres of board manufacturing in Bhadrachalam and Coimbatore units. In Bhadrachalam (Andhra Pradesh), we will make an overall investment of Rs 1,100 crore by April 2008,” ITC Paperboards and Specialty Division chief executive Pradeep Dhobale said.
The company would invest Rs 440 crore by October 2008 in a plant near Coimbatore in Tamil Nadu, he added.
With the expansion, total paper production capacity at the Bhadrachalam plant would go up to four lakh tonnes per year by April 2008 from three lakh tonnes now, he said.
ITC has got clearance from the ministry of environment and forests for expansion of Bhadrachalam plant and was awaiting clearance for investment in Coimbatore plant, Dhobale added.
ITC’s Kovai unit in Coimbatore, which produces paper from recycled fibres, would increase its total annual capacity to 1.80 lakh tonnes by October 2008, from one lakh tonnes at present, he said.
