Russel to seek shareholders' nod for investment

B M Khaitan group's tea firm, Mcleod Russel, today said the members of the company will consider the proposal to invest Rs 50 crore in the shares of D1 Williamson Magor Bio Fuel by way of postal ballot.

The company in a communique to the Bombay Stock Exchange informed that Mcleod Russel would purchase equity shares in the said company and or give loan of an amount not exceeding Rs 50 crore.

Earlier on July 30, the board of directors of Mcleod decided to invest up to Rs 50 crore in the next two years in D1 Williamson Magor Bio Fuel, a joint venture promoted by D1 Oils of UK and Williamson Magor & Co for production of bio-diesel in the east and north-east part of India.

D1 Williamson Magor Bio-fuel has been promoting Jatropha plantation among the farmers on their privately-owned wasteland under contract farming arrangements for use of Jatropha oilseeds for manufacture of bio-diesel.

The company plans to undertake plantation of total 2,00,000 hectares by 2011-12. The total investment required for development of production facilities of up to 2009-10, year of commencement of commercial production, was approximately Rs 300 crore.