MP govt, ITC spar on paper unit site

Although MP Industry Minister and former Chief Minister Babulal Gaur is optimistic on bringing ITC Bhadrachalam's specialty paper division's proposed Rs 25,00 crore greenfield paper plant in Madhya Pradesh, officials say they will "not allow" the company to set up the project anywhere other than Maneri (Mandla district).

ITC's paper division team visited the site and later asked for water at concessionary rates a few days ago, in a formal response to the state government.

The company, according to highly-placed government sources, has asked for land in Kareli (district Narsinghpur) instead of Maneri because lifting water from the Narmada will be costlier venture in Maneri. Gaur was in Hyderabad recently at an NRI meet organised by FICCI, but what had been transpired between them is not clear yet.

"Gaur and ITC representatives discussed the issue. They are yet to come up with a formal response and plan. We have pinned down the Maneri site for them. It would be difficult for us to acquire land in Narsinghpur. The area produces cash crops," a senior government official said.

So far the company has written a letter to Madhya Pradesh Trade Facilitation Corporation and has demanded water at reasonable rates, a gene bank and necessary forest clearance. The company in its letter, according to sources, has demanded to lay a pipeline to carry 50,000 million cubic meters of water from the Maneri water source.

Of the 12 surveyed sites, the company has shortlisted two""one in Kareli (Narsinghpur district) and the other in Maneri in Mandla. The state government has agreed upon acquiring a land area of 2,500 acres in Maneri for the proposed paper mill.

"Audyogik Kendra Vikas Nigam Jabalpur (a subsidiary of Madhya Pradesh State Industrial Development Corporation) is ready to lift water at company's expenses, which is presently available at 37-40 paise per kiloliter or prevailing government rates, which are variable," said the official.

"They (ITC) are also learnt to be in talks with the Gujarat government. But water is cheaper in Madhya Pradesh. But in no case we will be able to allow them to set up their plant at Kareli site. We hope the company will consider it and will review the demands for sops pertaining to water and land acquisition in Narsinghpur," he added.

MP government officials made a visit to Andhra Pradesh plant of ITC Bhadrachalam, and an ITC's specialty paper division team had visited Maneri and Kareli sites. Both are in talks for the last one year on this matter.

A number of officials in department of industries, Madhya Pradesh State Industrial Development Corporation and Madhya Pradesh Audyogik Vikas Nigam Jabalpur (nodal agency for Maneri industrial area) and district government privately said that Maneri was an ideal site for the company since a vast land area was lying deserted in a radius of 500 kms.

The company, according to them, requires 1,000 hectares of land to set up the plant and a staff colony and, 5,000 hectares for irrigation purposes, which is easier to acquire in tribal dominated Mandla district. "If the plant comes in Mandla it would generate a source of livelihood for the poor and needy people of the district," said an official.