NEW DELHI: The Cabinet Committee on Investments (CCI) is expected to take a decision on the diversified ITC Group's pulp and paper project in Andhra Pradesh.
"ITC requires 445 hectares of forest land inAndhra Pradesh for the project. Initial capex of Rs 3,500 crore was planned over the period of five years. CCI is scheduled to take up the matter," sources said.
The company's paperboards and speciality papers division, which caters to a wide spectrum of packaging, writing and printing paper requirements, has four manufacturing units at present, with a total capacity of 5.5 lakh million tonnes per annum.
ITC's paperboards and speciality papers division contributes nearly 12 per cent to its top-line.
Sources said from this project, the country is expected to save forex worth USD 260 million per annum.
According to industry estimates, demand for paperboard in the country in terms of volume stands at 1.8 million tonnes per annum and is growing at 8-10 per cent annually. ITC has a share of about 22 per cent in the domestic paper board market.
ITC has interests in FMCG, hotels, paperboards and packaging, tobacco products and information technology.