Hyderabad: The Telangana Government has decided to revive the Bheema Cements, located in Ramapuram of Nalgonda district, which was closed in March 2014.
Bheema Cements Ltd was holding three mining leases for Limestone in Ramapuram and Vepalamadhavaram Villages of Mellacheruvu Mandal, Suryapet District (previously Nalgonda District).
The company established a cement plant at Ramapuram village, Mellacheruvu Mandal, Suryapet District in 1986 with an installed capacity of 2.00 Lakh tonnes per annum and subsequently in 2010 expanded to 9.00 Lakh TPA (Tonnes Per Annum).
Bheema Cements Ltd took up expansion of cement plant by investing additional Rs.15.00 Crores in 2010 and also incurred expenditure of Rs.12.00 Crores for construction of under passage bridge for the conveyor from mines to factory.
In the process, due to hectic power shortage in 2013-14 in the erstwhile State of A.P (prior to reorganization) and market for cement was sluggish, the company incurred financial losses towards Sales Tax Dept -Rs.17.14 Crores; Mines Dept – Rs.4.66 Crores and Electricity Dept – Rs.12.60 Crores.
In the light of above, the cement plant was closed and non-operational w.e.f., March 4, due to disconnection of power supply by Electricity Dept for non-payment of bills.
Due to non-working of mining leases, violation of lease deed conditions and mineral revenue dues, the Dept. of Mines & Geology recommended for declaring the mining leases as lapsed.
The State Govt. vide G.O.Ms.No.69, Dt:22.11.2016 constituted the committee with the Commissioner, Commercial Tax; Director of Mines & Geology and Chairman & Managing Director, TSSPDCL by considering their representation on revival of the industry.
The report of the above committee was placed before 3rd Meeting of Cabinet Sub-Committee. The Government keeping in view of the recommendations of Cabinet Sub-Committee considered revival of M/s.Bheema Cements Ltd subject to the conditions that the Company shall pay Rs.10.00 Crores to Commercial Tax Dept.
immediately. Balance in 36 interest free monthly installments; Company shall pay Rs.2.00 Crores to TSSPDCL immediately. Balance in 60 monthly installments; TSSPDCL shall immediately restore power connection; Dues to Mines Dept.
shall be paid in 36 monthly interest free installments after a moratorium of 2 years; All penalties, interest and surcharges pertaining to Commercial Tax Dept, & Mines & Geology Dept. waived off and the Company shall resume production immediately.
In the light of revival, the company assured to commence operations and production immediately and in the process generate employed (upto 1000 jobs directly & indirectly) and further assured for a annual turnover of Rs.350 Crores in addition to the value-addition to the State Exchequer.
According to Industries Minister K. Tarakarama Rao, after formation of Telangana State, Chief Minister K. Chandrashekhar Rao announced entrepreneur friendly and country-wide applauded industrial reforms, generation of surplus power, encouraging industrial policy (TSiPASS) and with vide scope for industrial growth, the Government considered revival of the sick unit M/s.Bheema Cements Ltd which stopped operations prior to formation of Telangana State.
On revival of the company, there will be augmentation of revenue & value-addition to the Government and also generation of employment directly and indirectly, he said. (INN)