| The proposal of Pune-based Parakh Agro Industries Ltd, which is setting up roller atta (wheat flour) and besan (gram flour) mills with an investment of Rs 47 crore in Pithampur, has reportedly been awarded "mega project" status by the MP government, after hanging in the balance for a year. Meanwhile, the company has started production. |
| The department of industry has not made it clear whether the company has been awarded concessions it had asked for. |
| The Apex Committee on Investment Promotion, which discussed the Parakh proposal in its meeting held earlier this month, has not finalised it even after 15 days of the meeting. |
| The company had also wanted to be given exemption from stamp duty, to be levied after the proposed expansion. |
| It also asked for a bank guarantee of Rs 19.80 crore against an area of 5 acres given to the company at concessional rates, and investment promotion assistance for a period of 15 years instead of 10 years. |
| Further, the company wants exemption from mandi tax because raw materials will be processed as in the case of companies operating in food parks. |
| However, the MP government has reportedly offered few sops to the firm. "Atta (wheat flour) and besan do not fall under processed food, and as a result companies will not be offered those sops offered to companies operating in food parks," a government source said. |
| It would get exemption from electricity duty for five years against the company's demand of 10 years, added the source. |
| Parakh Agro has started commercial production. "The first phase of the project has been completed and commercial production started in June this year," said the source, adding that the MP Trade and Facilitation Corporation would co-operate with the company in obtaining further licences and going through formalities. |
| However, the state government is unlikely to give exemption from mandi tax and stamp duty. |
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