Air-conditioner manufacturer Blue Star Ltd is evaluating plans to set up a factory in Jammu and would decide about it at next month’s board meeting, a top company official said.
According to a PTI report: The company had announced setting up of two major manufacturing facilities, one each in Samba in Jammu and other at Sri City Special Economic Zone near here at a planned investment of Rs 215 crore over a four year period.
Asked about the status of the Jammu factory, Blue Star Ltd Aircondition and Refrigeration Products Business, Executive Director and President, B Thiagarajan said the company was ‘evaluating’ whether to proceed or not after implementation of Goods and Services Tax in July 1 by the Centre.
“We announced investment in Jammu and Kashmir and Sri City (SEZ near Chennai). In both places, land has been acquired. Last August (2016) we did the ground breaking ceremony. Now we are evaluating whether it is worth to proceed or not with the J&K factory” he was quoted by PTI as saying.
Citing the reasons, Thiagarajan said the quantum of benefit the company would get (from Jammu and Kashmir Government) was not clear following implementation of GST.
The company, he said, would hold it’s board meeting in October and then decide on whether to proceed with the Jammu factory.
To a query, he said the company would also take a call on beginning construction of the factory at Sri City.
According to company officials, the two new factories would replace the Thane and Bharuch facilities that were shut.
The factories in Jammu and Sri City would ensure that products manufactured were not only globally competitive, but also set new benchmarks in manufacturing technology.
Blue Star currently has plants one each in Wada, Dadra near Mumbai, Ahmedabad and in Himachal Pradesh.