HYDERABAD: Industries department has begun efforts for the revival of Bheema Cements in Mellacheruvu mandal in Suryapet district. The revival of the sick cement industry will provide direct employment to 1,000 persons.
Industries minister KT Rama Rao held talks with Bheema Cements recently and announced several sops for revival of the company. The factory would be reopened soon.
Bheema Cements which was started with a production capacity of 2 lakh tonnes in 1986 reached a production capacity of 9 lakh tonnes in 2010. However, due to severe power cuts in the combined Andhra Pradesh regime, the factory was closed as it incurred loss of R 34 crore.
The TRS government wanted Bheema Cements management to pay the dues to power and mines department in instalments. “We have made all efforts for revival of the cement factory,” Rama Rao said in a release on Wednesday.
The Bheema Cements Ltd has three mining leases for limestone in Ramapuram and Vepalamadhavaram villages of Mellacheruvu mandal in Suryapet district.
Due to severe power shortage in 2013-14 and also due to the sluggish market in cement industry, the company incurred losses. The company sales tax dues were R17.14 crore, dues to mining department were R4.66 crore and the power bill dues were R12.60 crore.
As per the measures announced by the government, Bheema Cements would pay R10 crore to commercial tax department immediately. The balance would be paid in 36 interest free monthly installments. It would pay R2 crore to TSSPDCL immediately and the balance in 60 monthly installments. TSSPDCL shall immediately restore power connection.
The dues to mines department would be paid in 36 monthly interest free installments after a moratorium of two years.
All penalties, interest and surcharges pertaining to the departments have been waived off. The Bheema Cements will resume production immediately and the expected annual turnover of the company would be R350 crore.