MP to allot land to 11 firms for jatropha cultivation

From the initial demand of 90,000 ha of land by companies, the state government has curtailed it to 22,000 ha.

As many as 11 firms will be allotted around 22,000 hectares of land for jatropha cultivation to produce bio-diesel in Madhya Pradesh.

In a recent decision, the state government curbed the companies' demand of 90,000 hectares of land to only 22000 hectares, which, according to a senior government official, "will see a combined investment of Rs 3,200 crore."

However, insiders in the state government, expressing concerns to Business Standard, said this was an exercise of allotting land to industries through the back door.

"The identified land belong to areas where the poorest of the poors live. They are Jhabua, Barwani and Shivpuri where landowners will hardly protest," said insiders.

Mumbai-based Ruchi Soya Industries, Delhi-based Mission Bio Fuels India and LT Overseas Pvt Ltd, Great One Oils Pvt Ltd, DN Oil Pvt Ltd and Morena-based KS Oils are the major ones among those who have demanded a huge chunk of land for bio-diesel cultivation.

"There are eleven companies who have evinced their interest in producing bio-diesel. They initially demanded more than 600,000 hectares of land but the state government reduced it to 2,000 hectares for each investors. After successful completion of the project within two years from now, the companies will be awarded lease of land for a period of 28 years on an annual fee (Rs 500 per hectare) basis," VS Niranjan, managing director, MP State Agro Industries Development Corporation, told Business Standard. The fee will go to gram sabha (a village level governing independent body).

Bio-diesel is produced from jatropha seed oils by converting triglyceride present in the seed into methyl esters.

All the companies had demanded a land area of 6.5 million hectares of land in Madhya Pradesh. In an agri-business meet organised during May this year, nine companies had evinced interest in jatropha (bio-diesel) plantation and bio-diesel production. Later, two more companies joined.

Of these, Ruchi Soya had proposed Rs 1,000-crore investment, Mission Bio-fuels Rs 250 crore, KS Oils Rs 200 crore, LT Overseas Ltd Rs 250 crore, Great One Oils Rs 5 crore and DN Oils Pvt Ltd Rs 5,000 crore.

"Against their combined proposal in rupee crore, we expected Rs 3,200 crore investment in the projects," added Niranjan.

The others are yet to identify the land and apply for the same, said the source. "These six proposals have been considered by district collectors and district committees on investment. They will be put before the Project Clearance & Implementation Board (PCIB) meeting in days to come," the source said, adding, "another firm Indian Bio-fuels Corporation Pvt Ltd has not shown any interest so far."

The state government had altered the rules, Act and provisions to allot non-forest unutilised non-agricultural land to private companies and had launched a policy, "Non-Forest, Non-agriculture land Policy 2006."