Indian company to invest Rs. 3,250 million on manufacturing project

An Indian company has agreed to invest Rs. 3,250 million on PVC raw materials for plastic products in Sri Lanka; chlorine which is used to purify water and to produce caustic soda and sulfuric acid and to start a thermal power station.

Industrial Development Minister Kumara Welgama and a team of Sri Lankan representatives toured India recently and held discussions with the chairman and the board of directors of the world famous TGV Group in Kurnool in Andra Pradesh in India who agreed to this project. Under the project the TGV company hopes to provide employment to around 1,800 persons.

PVC raw materials required for the manufacture of all plastic products in this country is imported from a large number of countries including China and India.

"At present chemicals including sulfuric acid and caustic soda required for various products in this country including chlorine which is needed to purify water are also imported.

As sulfuric acid is needed for SSP fertilizer manufacturing which would be started by Lanka Phosphate Company, which functions under the Ministry of Industrial Development, the Ministry feels that this need could also be fulfilled. The TGV Company has pointed out that salt, which is a main raw material, for the manufacture of chemicals could be obtained easily from Sri Lanka.

It is hoped to produce 100 MW of electricity especially from the thermal power station which is included in this project. The project report handed over to the Minister says that 50 MW of electricity could be provided to the national grid.

The ministry said that by implementing this project a large sum of money which is spent annually on the importation of chemicals could be saved. TGV Company officials are due to arrive in the country soon for further discussions in this regard.

North Western Province Regional Industrial Services Director S. H. Harischandra of the Ministry of Industrial Development and the Chairman of Paranthan Chemicals Chandrabanu Adikaram were among the Sri Lankan representatives.