Red tape delays MP SEZ project

The fate of the Rs 170-crore proposed 'Food City' project, which is likely to attract more than Rs 1,500 crore investment in Madhya Pradesh, is hanging in the balance due to ambiguity in state government policy and bureaucratic hurdles for the last four years.

The developer of the project Agro Culture India Private Limited has now urged the state government to forward the project to center to convert it as a product specific Special Economic Zone (SEZ).

The private firm had signed a memorandum of understanding with Madhya Pradesh State Audyogik Kendra Vikas Nigam (a subsidiary of Madhya Pradesh State Industrial Development Corporation) on 10 April 2003 to develop a Food City for export of processed foods.

The company had proposed to develop a common facility of international standard in the state and had obtained "letter of commitment" from potential investors with a projected capital of Rs 1549 crore. Even completion of fourth years is nearing the company has yet to obtain a clearance from the state government that harps on its "investor-friendly" policies.

"We signed an MoU with the Audyogik Kendra Vikas Nigam Indore for the proposed city in 2003 but they have not acquired land for us. We also obtained letter of commitment from 12 companies which are interested in making an investment to the tune of Rs 1564 crore but we are still waiting for government clearance," Soram Prabhakar, managing director of the company said.

The company has proposed to develop the Food City or SEZ on an enclosed area of 350 acres with state-of-the-art infrastructure like concrete roads, common effluent treatment plant, a 25 MW captive power generation unit, concealed sewage and drainage and power lines. The company has also entered into tie-up with German firm for captive power generation.

Prabhakar further said, "Only last year the AKVN Indore has assured us that the entity would acquire an area at Chainpura industrial growth center in Guna district. However we have not entered in MoU with the government again since it has no meaning at all. We have already marketed our space and investors are ready to invest and have requested the government to forward it to Center for converting it into a product specific SEZ. We have been told that the matter is pending with the State Apex Empowerment Committee on investment."

He also said the project would take shape within six months from the date of government clearance. The senior officials in the AKVN were not available for comment. The apex committee headed by the state chief minister clears various investment proposals. While government insiders have said the committee would meet within a day or two but this proposal had yet to come for clearance before the committee.