In a debatable decision, the Madhya Pradesh government today allowed private power companies to mortgage land allotted to them for the specific purpose of raising loans.
It is not customary in the state to allow industrial houses to mortgage land allocated to them for industrial purposes. “This has been done in one case of Jaypee group, which is setting up a power plant in Nigri village. Power Ventures Limited Nigri has been given state cabinet nod in this regard today. A total of 293 hectares of land has been allotted to the company; it can be mortgaged in favour of any financial institute or bank.”
Earlier, the state government had allowed jatropha growing business houses to mortgage land area allocated to them for jatropha cultivation and use it for commercial ventures only. The issue had caused a furore in the assembly.
Jaypee has been allocated 0.95 hectare land (procured by state government) in Nigri, 17.53 hectares private land in Katai, 6.25 hectares in Niwas, 7.68 hectares in Hirdi. A total of 32.99 hectares has been procured for the company.
“This land can be mortgaged in any financial institute for loans provided the land use is not changed. The company will use it for the said power project,” a government statement said.
Jaypee is setting up 1320 Mw power project in Nigri on super critical technology. It had demanded a total of 855 acres of land. Corporate biggies namely Anil Dhirubhai Ambani Group, Essar, Jaypee and Bhaskar group have proposed to set up power projects in Singrauli district.
