Asian Paints has announced a delay in the commissioning of its new water-based paint manufacturing facility in Madhya Pradesh. The facility, with a capacity of 4 lakhs kilolitres per annum and an approximate investment of Rs. 2,000 crores, is now expected to begin operations later than initially projected. The postponement is due to the extension of the deadline for environmental clearance.
Manufacturing Facility Timeline Adjustment
Asian Paints has revised the timeline for the commencement of commercial production at its upcoming manufacturing facility in Madhya Pradesh. The facility, designed for water-based paint production, represents a significant investment for the company in expanding its production capacity.
Project Details and Investment
The proposed facility has a production capacity of 4 lakhs kilolitres per annum. The project represents an approximate investment of Rs. 2,000 crores in the state of Madhya Pradesh. The land for the project was allotted by MP Industrial Development Corporation Limited at Pithampur. The commissioning of the facility was initially projected based on the acquisition date of the land.
Reason for Delay
The delay is primarily attributed to the extension granted for obtaining the Environmental Clearance (EC). Subsequently, the Cabinet Committee of Investment Promotion, Madhya Pradesh (CCIP) granted permission to commence manufacturing within 3 years from the date of receipt of EC. The manufacturing at the facility was expected to be commissioned within three years from the acquisition of the land as per the original approval received from CCIP.
Incentives and Benefits
The company has confirmed that there is no impact on the incentives or benefits granted by the Government of Madhya Pradesh because of this timeline revision.
Source: BSE
