ITC's MP project progresses

Firm asked to increase the quantum of investment in a paper project

In a meeting with ITC representatives yesterday, the MP government is learnt to have asked the firm to increase the quantum of investment in a paper project, as part of the state's social forestry plans.

However, the MP government has to do a lot of homework before meeting ITC's concerns on its proposed investment of Rs 2,500 crore.

ITC officials yesterday made a presentation (prepared by SPB Projects and Consultancy Ltd) before the MP minister for commerce and industries, and officials of the forest department.

The company is planning a pulp and paper project, which now hinges on many factors, the prime of them are two--an assurance from the state government that plantations (for the project) like subabul and casuarinas will fall under agro business, and, secondly, a clearance from the central government to allot degraded forest land/wasteland for captive plantation to the company.

Of the 12 surveyed sites, the company has shortlisted two""one in Kareli (Narsinghpur) and the other in Maneri in the Mandla district.

The state government has agreed upon "acquiring a land area of 2,500 acres in Maneri for the paper mill".

The state government has to assure the firm also on the following: how a plantation of 50,000""75,000 hectares can be raised over five years; leasing out land on a long-term basis; joint ventures with village forest committees; allotment of bamboos exclusively to ITC for a minimum period of five years (quantity 200,000 tonnes approximately); relaxation of transit regulations on pulpwood, etc.

Also, the company is yet to know of the government's plan to develop a highway connecting Bhopal with Kareli or Jabalpur. The company has asked the government whether there will be exemption for utilising electricity from the grid and whether the government will buy surplus power from the firm.

The central government is yet to come up with a law that permits states to allot degraded/waste land to private firms for captive plantation.

"The meeting with ITC officials was fruitful. They proposed setting up a plant of 200,000 tonnes capacity, and the state industrial corporation has assured acquiring land for them," Raghav Chandra, managing director, Madhya Pradesh State Industrial Development Corporation, told Business Standard.

The company requires 1,000 hectares for the plant and the colony, 5,000 hectares for irrigation using treated wastewater from the paper mill for plantation, 50,000 cubic metres of water per day, and 50 MW of power.

"The mill will be with 100 per cent captive power," the company said in its presentation. ITC's project will require 550,000 tonnes of fuel per year.

"We will offer them water-lifting facilities from the Narmada at the rate of 40 paise per cubic metre," said Chandra, adding, "another meeting with senior officials of ITC is likely to take place later this month. The department of forest has in its latest forest policy seeks to develop degraded forestland with private partnership and they are awaiting the Centre's nod in this regard."