ITC Bhadrachalam seeks sops from MP

ITC Bhadrachalam's specialty paper division has asked the Madhya Pradesh government for sops in order to give shape to its proposed Rs 2,500-crore greenfield paper plant in the state.

In a recent letter to the Madhya Pradesh Trade Facilitation Corporation the company has demanded water and land in a locality that can provide grist to its mill. "The letter is the first formal response from the company," a government source told Business Standard.

Officials from the state government and the company are in talks for the past few months over the project. The state government has identified land in Maneri in the Mandla district that can be offered to ITC's arm for its plant and other purposes.

The land is near a wasteland area where the company's plant can run on the social forestry model through clone plantation.

According to government officials, the company, however, has asked for land in Kareli instead of Maneri, because the water source there is too far to lift. The company wants the water source to be in a radius of 7-8 km.

"Since the Kareli site is near a water source, the state government should either acquire land in its vicinity or lay a pipeline to carry 50,000 million cubic meters of water from the Maneri water source," a source said.In both the cases it would be tough for the government to take a decision.

"Identifying land for social forestry in Kareli would be a big task because it may attract legal action by locals who grow cash crops all over the Narsinghpur district. "However, Audyogik Kendra Vikas Nigam may supply water against a fixed rate in Maneri," said a government official.

ITC's other demands include a gene bank and necessary forest clearance.

Government sources said the State Industrial Development Corporation may press for the Maneri site since "a wasteland in a radius of 500 km is lying unproductive. This will create a good source of employment and income for the local tribal people."

In its meetings in May and July this year and a subsequent visit by state officials to ITC Bhadrachalam's plant in Andhra Pradesh, the company had said it required 1,000 hectares of land to set up the plant and a staff colony and, 5,000 hectares for irrigation purposes.

The company also has plans to set up a 50-Mw power plant.ITC's consultant SPB Projects and Consultancy Ltd had conducted a survey of 12 sites in Madhya Pradesh.

The company is yet to discuss and give a formal shape to joint ventures with village committees, reservations of bamboo fields, plantations on 50,000"�75,000 hectares and leasing land on a long-term basis.

ROAD BLOCKS

ITC wants water and land in a locality that can provide grist to its mill

MP government has identified land in Maneri, in the Mandla district, but ITC has asked for land in Kareli instead of Maneri, because the water source there is too far to lift

Local farmers in Kareli may oppose any move by the government here, as the area is used to grow cash crops