Tuesday, September 26, 2023
HomeIndustriesAsian Paints to delay its Phase 2 investments due to Pandemic effects

Asian Paints to delay its Phase 2 investments due to Pandemic effects

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The proposal

In 2013, Asian Paints Ltd came up with a proposal to invest Rs. 2300 Crores on a 6 lakh KPA water based paint making facility on a 175 acres plot at Kochanahali industrial estate near Mysuru. When completed, the project promised to create nearly 4500 jobs (direct and indirect) bolstering the local economy.

Their proposal came up with a plan to invest the entire money in two phases. The first phase was to build a 3 lakh KPA plant with an investment of Rs. 1254 Crores. Subsequently after that, the second phase would kick in to expand the plant by another 3 lakh KPA at an investment of Rs. 1031 Crores. 

So, the overall 6 lakh KPA plant in 2 phases, as per their schedule,  was to be constructed and commissioned not later than December 2022.

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Government’s Approval and Groundbreaking

The Karnataka Government gave in-principle approval for the proposal back in 2013 and allotted a 175 acres plot to the company and gave concessions applicable to large investments back then.  Soon the groundbreaking ceremony was performed at the site and the work was kick-started without any delay.

The engineers with the help of manpower laboured round-the-clock to complete the phase 1 of the project by September 2018.  Phase 1 gave employment to 605 people.

COVID Pandemic and its Repercussions

The planning for the phase 2 was underway by 2019 and from the later part of that year, the COVID19 outbreak happened and the panic of infection gripped the whole world like never before. That’s when all planning went for a toss, and the year 2020 saw the lockdowns every now and then.

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World was slipping deep into economic slowdown, as a consequence of it. The year 2021 was no different and that’s when Asian Paints requested the Government to relax their completion schedule by 3 years and grant them time till 2025 december to complete the project in totality.

The Phase 2 of the Project

With the Government’s COVID vaccination drive catching up with the speed, the work on the second phase of the project with an investment of Rs. 1031 Crores, is also slowly accelerating with the hope of completion ahead of the December 2025 schedule.

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  1. […] In 2013 Asian Paints entered into a contract with Karnataka Government to invest Rs. 2300 crores to put up six Lakh kilo liters of water-based decorative paint in two phases. Accordingly, the company invested approximately Rs. 1254 Crores by the end of 2018 to build a 300,000 Kilo liter plant. However, when the preparation was on to expand the plant, the covid pandemic struck the world out of nowhere. Due to the pandemic expansion project was put off. We had reported this news in our earlier article […]

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