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Home > Trade News > Hindustan Paper Corporation Ltd (HPC) to invest Rs 4,670 crore for expansion
Hindustan Paper Corporation Ltd (HPC) to invest Rs 4,670 crore for expansion
 
Hindustan Paper Corporation Ltd (HPC) to invest Rs 4,670 crore for expansion
Hindustan Paper Corporation plans to invest in greenfield and brownfield paper plants in Uttar Pradesh (UP). The 4,670 crore investment would boost the companys paper and print capacity to 800,000 tonne a year by 2012. "The investment would be carried out in four mills including two subsidiary mills of HPC for modernization and capacity augmentation. We would promote one Greenfield paper mill in UP, which will be the largest single location in the country," said Raji Philip, chairman & managing director, HPC announcing the annual results of the company.
The UP plant to be taken over by HPC has government approval and to fund its take over a special purpose vehicle Jagdispur Paper Mills Ltd. has been floated in which HPC would hold 51 percent stake. HPC is waiting for the market to stabilize to tap the capital market to fund its 2,742 crore UP project. "The 300,000 tonne capacity project would be financed through a debt equity ratio of 1:2," Philip said. "We are planning to tap capital market to finance the 2,742 crore paper project in UP that has already been cleared by the government," Philips said. Once the market will stabilize they would be heading for the market.

Posted On : 6/20/2008 11:58:33 AM

 
 
 
Hindustan Paper Corporation Ltd (HPC) to invest Rs 4,670 crore for expansion