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ITC makes little headway in MP

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Shashikant Trivedi Bhopal
Last Updated : Feb 06 2013 | 7:01 AM IST
ITC Bhadrachalam's proposed Rs 2,500 crore investment in a greenfield plant in MP has become a delicate issue.
 
In the absence of good infrastructure and other facilities, the state government has not much to showcase to ITC except a land area in the Maneri industrial area, which is in the possession of the MP Audyogik Kendra Vikash Nigam, Jabalpur. The area is too small to meet ITC's requirement of 1,000-2,500 hectares.
 
Madhya Pradesh State Industrial Development Corporation officials involved in the deal area are tight-lipped on the issue because they fear "Chhattisgarh, Gujarat, Andhra Pradesh or Maharashtra may snatch away the project from Madhya Pradesh".
 
An official told Business Standard, "Chhattisgarh is our closest rival since it has already attracted Rs 23,000 crore in the past two months from the Tatas, Iffco and Essar-- in the Naxal-affected Bastar area at that--by offering a number of sops."
 
A team of ITC officials visited Mandla last month in this regard.
 
"The ITC team visited the Mandla and Maneri areas. We have shown them the land, which is yet to be acquired," said Prabhat Parashar, collector, Mandla, on the telephone.
 
ITC officials, comprising former Indian Forest Service officers, who visited Bhopal, refused to talk on the issue. However, one said, "We are looking at other states too."
 
When asked if the district administration has sufficient land for the company, he said, "Only the MP Audyogik Kendra Vikas Nigam can allot the land. They have 500-700 acres. But the district administration will acquire additional land, if asked. The company can also lift water from nearby Bargi dam on the Narmada River. However, I have not been asked by the industry department to acquire the land so far."
 
According to the survey conducted by ITC's consultant SPB Projects and Consultancy Ltd, Maneri is one of the sites, the other being Kareli in Narsinghpur. 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, leasing land on a long-term basis.
 
"The company will have to upgrade the barren land area scattered near Mandla, Jabalpur, and Sagar for bamboo fields, but I do not have much idea about their plans," Parashar said.
 
The company, according to sources, says it requires 1,000 hectares to set up the plant, a residential colony for its staff, and 5,000 hectares for irrigation and utilising treated wastewater from the paper mill. The company had also announced setting up a 50 MW power plant.
 
According to sources, the state government is yet to spell out terms on plantations of trees like subabul and casuarinas, if they at all come under agro business.
 
The government has offered sops to the agro business industry in its new industry policy and a nod from the central government to allot degraded forest land/wasteland for captive plantation is needed.

 
 

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First Published: Jul 15 2005 | 12:00 AM IST

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