Business

VARUN BEVERAGES PROPOSES RS. 500 CR INVESTMENT TO SET UP DRINKS & TABLE WATER UNIT IN PUNJAB

October 24, 2017 08:37 PM

  • SEEKS EARLY BIRD ANCHOR UNIT STATUS IN EXTREME BORDER AREA OF PATHANKOT

Chandigarh (Face2News)

The new industrial policy announced by the Captain Amarinder Singh government in Punjab has triggered a wave of interest from investors, with Gurgaon-based Varun Beverages proposing a Rs. 500 crore investment to set up a drinks and water table unit in Pathankot.

The Group has sought an anchor unit status in the extreme border zone border zone with added advantage of an early bird unit for its proposed unit for aerated soft drinks, juice based drinks and table water at the PSIEC developed industrial estate in Pathankot.

The unit will provide direct employment to 350 people and indirect employment to another 1500 in three phases, the Group has said in its detailed proposal submitted to Suresh Kumar, Chief Principal Secretary to Chief Minister. Suresh Kumar has submitted the proposal to the Chief Minister’s Office (CMO) for necessary action, an official spokesperson said here on Tuesday.

Varun Beverages CEO Rajiv Sant, while seeking the state government’s support for grant of anchor status in extreme border area, with attached benefits, said the project was the first of its scale and kind in PSIEC. It will not only generate a huge employment potential but also act as a catalyst to attract other investments in the extreme border zone, located about 27 km from the International Border, he said. The project, he said, was a fit case for being deemed as an early bird unit, as per the "New Industrial and Business Development Policy-2017" for units in the extreme border zone. This would make the Company eligible for incentives @ 140% of the highest in that category (100% SGST refund up to 125% of FCI) to enable the group to start the construction immediately in time for their next season in 2019.

In the proposal, the Company said most of the raw material would be sourced locally, giving a boost to local manufacturers/growers of sugar, citrus fruits, service providers, packaging material and finished product suppliers. Further, the project was committed to providing 10,000 chilling equipments/machines to eligible candidates to facilitate setting up new outlets in the state to eventually provide livelihood to over 10,000 families.

In addition, the project, with its huge transportation and logistics requirement, would also justify the formation of a transport hub by local and national carriers. Further, it would impart training at a proposed skill development centre at its Pathankot plant to make 500-750 people employable every year for its Pizza Hut/KFC/Costa Coffee outlets across the country. Scores others would become skilled to gain employment outside the company.

The project would also be instrumental in developing various ancillary industries such as printing, packaging, corrugation, recycled bottles and hospitality. The state would start earning in full GST and other taxes as applicable once the period or value of FCI (as dictated by the policy) are covered, according to the proposal.

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