Sanghi's Rs 8,000 crore MP proposal gets nod

After initial hiccups, the MP government has finally given the green signal to the Rs 8,000 crore investment proposal of Hyderabad-based Sanghi Industries Ltd, cement manufacturers that own the "Lion" brand.

The company has proposed to invest Rs 403 crore in setting up a cement plant of a 3-million-tonne capacity and a captive power unit of 60 Mw (the investment size has not been specified), and Rs 7,020 crore in a thermal power unit of 2,000 Mw later.

The company has identified locations in Village Lalpur Kothi of District Satna and Villages Barhi, Badwara and Mudwara in District Katni.

The company has asked for government support in getting a mining lease in Satna, the allotment of government-owned wasteland of 2,000 acres near identified deposits, exemptions of electricity duty on a captive power plant for 15 years from the date of the start of commercial production, permission to draw 10,000 cubic metres of water a day from the nearby sources, 100 per cent exemption on the payment of sales tax and value-added tax or an equivalent grant for 14 years, exemptions from stamp duties and registration charges and equity participation by the Madhya Pradesh State Industrial Development Corporation and Madhya Pradesh Trade and Infrastructure Facilitation Corporation.

It has also sought support in getting virgin coal-mining blocks within a distance of 75-100 km.

There are coal blocks in the Pench-Kanhan valley, and unexplored blocks of the Singarauli coalfields in Chhindwara and Sidhi and also in District Bilaspur of Chhattisgarh. The MP government should support the allocation of one of these blocks by Coal India Ltd, the company has said.

"The Project Implementation and Clearance Board (PICB) had given 'in-principle' clearance to the project. The company has been asked to apply for the allotment of coal blocks and limestone deposits," said a government spokesperson.

Sanghi had decided to invest in Madhya Pradesh almost a year ago. However, a formal application regarding the proposal was submitted to the department of industry in July this year. The company will generate 345 jobs and various allied activities.