Malu Paper Mills Ltd has informed BSE that the Company has signed Memorandum of
Understanding (MOU) with Government of Maharashtra on March 15, 2008 for setting up Mega expansion project.

The main features of the project are installation of two machines viz. (PM-III) Newsprint Paper machine of 49,500 MTPA capacity along with 6MW captive power plant and (PM?IV) the Writing & Printing paper machine of 82,500 MTPA along with 15 MW captive power plant.

The Phase I of the said project i.e. PM III has already commenced the commercial production and on the completion of the Mega Project, the Company will be eligible for incentives and benefits such as exemption from payment of Electricity duty, Stamp duty and Industrial Promotion Subsidy etc. as per the current Industrial policy of the State of Maharashtra and Package Scheme of Incentives (PSI) 2007.