During the year under review due to the increased costs not supported by increase in yarn price, the operating performance remained static. The energy cost increased significantly compared to previous year. Use of HFO plant had to be stopped as the cost per unit of power generated was much higher as compared to the cost per unit of power purchased from State Electricity Board. In order to reduce the energy cost, the preliminary work on project "Monsoon Spillway" has been commenced. Subject to requisite approvals being received it is intended to complete this project by July 2008.
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