Jaypee proposes Rs 1,500 cr investment in MP

The Jaypee group has proposed three investment proposals in Madhya Pradesh and has asked for sops for the proposed investment of about Rs 1,500 crore.

This apart, Jaiprkash Associates is developing a project of 500 Mw with an investment of Rs 2,000 crore at Nigri village of Sidhi district. The firm has asked for concessions for this one too.

"Jaiprakash Associates has proposed to set up a cement plant in Sidhi district with an investment of Rs 576 crore. And JP Minerals Ltd has proposed to set up a mega coal mining plant in Sidhi with an investment of Rs 510 crore. Similarly Bhilai JP Cements Ltd, a joint venture of SAIL and Jaiprakash Associates Ltd, has proposed to set up a cement plant at Satna district with an investment of Rs 421 crore," a government spokesperson said.

SAIL has also incorporated a joint venture company with Jaiprakash Associates to set up a 2.2-million-tonne cement plant at Bhilai in Chhattisgarh.

The Apex Empowerment Committee on Investment discussed the proposals and chances of offering them sops and concessions. "The committee has yet to decide on sops and concessions that include concessions from sales tax (value added tax) and entry tax on transportation of raw material," the spokesperson said.

However, a source in government said, "The decision on providing sops and concessions to Bhilai JP Cement Ltd is most likely to be turned down since it is a joint venture firm with a public sector undertaking unit. JP Minerals will also likely to get a negative response as mining is not included in industry definition."

The source added that the cement plant proposal of Jaiprakash Associates in Sidhi district is also unlikely to get sops as it does not add anything significant to the state.

The Apex Empowerment Committee, chaired by Chief Minister Shivraj Singh Chouhan, normally discusses offering sops to industrial proposals and investment. Companies approach the committee to get concessions on taxes. But it is a cumbersome and time-consuming exercise.

"The department of industry, commercial tax and finance put notes on proposals for no reason instead they should be rejected if does not fulfil the criteria. The committee follows advice and suggestion of the department and industries have to wait," said the source.