The Suit challenging the validity of imposition of Electricity Duty on captive power generation @ 25 paise per Unit from 17 / 07 / 2003 by the Government of Andhra Pradesh continues to be pending before the Hon'ble High Court of Andhra Pradesh.
The Federation of Andhra Pradesh Chamber of Commerce & Industry (FAPCCI) has chosen this Section for the state award for "Excellence in Industrial Productivity" for the year 2005 - 06 presented by the Hon'ble Chief Minister of Andhra Pradesh, Dr. Y. S. Rajasekhara Reddy.
All India Manufacturers' Organization (Andhra Pradesh State Board) conferred the "Outstanding Achievement Award" for the year 2006 and was presented by H. E The Governor of Andhra Pradesh, Shri N. D. Tiwari on 17th September, 2007 at Hyderabad, which was received by Shri K. C. Jain, Sr. President of this Section.
Basantnagar Limestone Mines bagged the 1st prize for Environmental & Health Management and Heavy Earth Moving Machinery and also 2nd prize for Loading and Transportation and Overall Performance, from the Director General of Mines Safety, Hyderabad during Mines Safety Week Celebrations.
This Section is continuing its rural and community development activities in nearby villages and participating in all the social welfare programs of the State Government. The activities include Pulse Polio Programme, farmers' training, animal health camps, distribution of agriculture implements, promotion of self help groups of women for socio - economic development, running of a Vocational Training Centre for enhancement of skills of youth of surrounding areas.
Industrial relations were cordial and peaceful.
BIRLA TYRES SECTION
The gross turnover of the Section this year is Rs. 1,389.04 crores, compared with Rs.1,112.21 crores thus showing a growth more than 24% over 2006 - 07. Export sales for the year under review amounted to Rs 181.46 crores, against Rs. 192.79 crores in the previous year.
Inspite of sharp increase in prices of natural rubber, butyl rubber and other petroleum - based raw materials, the Section has been able to bring about improvement in its bottom line due to enhanced capacity, better price realization, various cost cutting measures and improvement in operational efficiencies.
The Section has completed all expansion programmes at Balasore factory except 19 MT per day project of Off The Road (OTR), which is going to be completed by July'08. A Greenfield project involving an estimated investment of Rs.759 crores near Haridwar in Uttarakhand is under progress and the commercial production of the first phase of 70 MT per day is likely to be commissioned in May 2008. The total expansion of the said Haridwar Project should be in place by the 3rd quarter of 2008 - 09.
The Board in principal has further approved an expansion at the same site for radial tyres with 100 MT per day capacity and bias tyres with 125 MT per day capacity involving an estimated aggregate capital outlay of Rs. 840 crores. The project is likely to start commercial production by end 2009.
The Section continues to have the distinction of being certified for ISO - 9001, TS - 16949, ISO - 14001, SA - 8000, OSHAS - 18001 and TPM.
Relations with employees have been cordial and conducive to growth.
RAYON & TRANSPARENT PAPER SECTIONS
The Viscose Filament Yarn (VFY) industry had to face challenges posed by growing imports from China as well as limited growth of VFY business itself. However, with increased domestic demand of super - fine denier category of VFY coupled with higher global demand, the inventory could be maintained at a reasonable level. Realisations improved to some extent but not in proportion to the increase in the cost of production. The Association of Man - Made Fibre Industry of India has filed a petition with the Government of India seeking review of Anti - Dumping Duty in view of appreciation of the Indian Rupee and global increase in cost of production. The exports were 861 MT against 402 MT last year.
