Mumbai-based Dollex Industries Ltd’s plan to set up an ethanol plant in Narsinghpur district of Madhya Pradesh has hit a roadblock.
“After waiting for two years, the Narsinghpur district collector had sent a letter stating that the land, which we had asked for, falls under the forest area and requires Centre’s permission,” a company source said. Dollex had sought 379 hectares of land for the Narsinghpur project.
The company had signed a memorandum of understanding with the MP government in 2007 to set up three ethanol plants in the state at an investment of Rs 450 crore.
The plants were proposed in Tendukheda (Narsinghpur district), Jhabua and Rehli (Sagar district).
He said the apex committee on investment and the state Project Clearance and Implementation Board (PCIB) had awarded ‘in-principle’ clearance to the projects.
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However, a senior government official said, “The revenue department cannot allot land to the company as it falls under the forest area. The Trade and Investment Facilitation Corporation (Trifac) cannot help much in this regard. If the company is interested we can identify another land.”
The company meanwhile is planning to go ahead with the Jhabua project as it has received clearance from the district administration.
It is also likely to be allotted the land in Sagar district.
The proposed plants will each have a crushing capacity of 2,500 tonne per day. These will also provide 39 Mw to the state electricity board.
The company is engaged in manufacturing extra neutral alcohol, ethanol and its byproducts.