A day after state government announced new industrial policy offering a host of incentives in Punjab, textile major Nahar Group has announced that it will be investing Rs 1,500 crore in ramping up its spinning and denim capacities in Punjab.

`We have chalked out a plan to invest Rs 1,500 crore on expansion in Punjab,` Nahar Industrial Enterprises Vice Chairman and Managng Director, Kamal Oswal told PTI.

Under the expansion programme, the company plans to install two lakh new spindles at its yarn manufacturing facilities at Larlu in Mohali and at Jodhan and Malerkotla in Ludhiana district.

The current capacity of Nahar Group is 8 lakh spindles. Additionally, the Nahar Group will also double the denim manufacturing facility at Ludhiana by expanding the capacity by 20 million meters per annum. The company currently has a denim capacity of 20 million meters per annum.

`The new capacity in spinning and denim will come up in next 2-3 years,` he said.

Nahar Group is eyeing additional turnover of Rs 2,000-3000 crore post the expansion. `Currently, our group turnover is about Rs 6,000 crore. The new expansion will add Rs 2,000-3000 crore more (in topline),` Oswal said.

The expansion programme will be funded by a mixture of debt and internal accruals.

Punjab government yesterday announced a new industrial policy promising to offer exemption of VAT from minimum of 50 per cent to maximum of 80 per cent for new manufacturing including integrated textiles sectors.

There will also be 100 per cent exemption from payment of stamp duty, electricity duty and property tax and 75 per cent in payment of Central Sales Tax (CST) to new units and expansion projects.