The Telangana government on Wednesday approved a plan to revive Ballarpur Industries Limited’s pulp unit in the state, closed for the past four years.

BILT’s pulp business unit in Jayashankar Bhupalpally district produces rayon grade pulp used in the manufacture of Viscose Staple Fibre and Viscose Staple Yarn.

The government has agreed to accept payment of unpaid power bills, taxes and Forest Department arrears in instalments while the company will invest Rs 125 crore more for the unit’s modernisation, Industry Minister K.T. Rama Rao said.

The Industry Department has announced incentives like consolidated annual subsidy of Rs 21 crore for seven years towards supply of pulp wood, maximum subsidy of Rs 9 crore per annum for seven years for supply of electricity to the unit, apart from waiver on the firm’s commercial tax dues and an investment subsidy of Rs 12.5 crore towards the company’s Rs 125 crore modernisation plan.

The BILT unit’s revival is expected to benefit hundreds of families from tribal areas in the district. When it was functional, the unit provided direct employment to 750 persons and indirect employment to several hundreds more.

Rao said that besides encouraging reputed companies to establish units in Telangana, the state is equally determined to revive its sick industries.

“The Telangana government’s committed and sustained efforts has led to the revival of sick industries such as Ramagundam Fertilisers and Sirpur Kagaznagar Paper Mills in the past, and BILT now,” he said.