Zee's Rs 80-cr park trips over MP govt's red tape

Industrial policy allows only 20 acres of land at discounted price

In absence of coordination between state revenue and industry department, Subhash Chandra-promoted Essel Group's proposal to set up a Rs 80 crore entertainment park is in a limbo.

The state government is yet to allocate land to the company. Essel group, which owns the Zee brand, is demanding 60 acres at discounted rates. The state industry policy, however, allows the government to offer a maximum of 20 acres of land at 50 per cent concession.

The company has pointed out that the park would not be viable if the government did not offer concessions. However, officials are convinced that the industry policy says five to 20 acres land at concessionary rate of 25 per cent of the stipulated premium rate would be made available to projects that involves investment of over Rs 25 crore.

The Essel group will set up the park through its company Pan India Paryatan Ltd. Also, it has planned to set up 25 new multiplexes all over the state (at least in 20 districts) with an investment of Rs 200 crore.

The land allotment issue was already being hotly debated by the members of Apex Committee on Investment Promotion when Babulal Gaur was the chief minister.

A senior official told Business Standard that there was official opposition to the allotment as the land earmarked for the park "belonged to a government-owned farm reserved for cattle".

Senior officials in state government said if the land allotment issue was not solved, the company may abandon its proposal.

"The state government has also not decided on the land allocation to the much-awaited Rs 2,000 crore Auto Testing Track in Indore.

Also, Jai Prakash Industries Ltd., which has signed a memorandum of understanding with the state government to set up a power plant, needs 5,000 acres of land.

"If only 20 acres of land will be available on concession, the investment cost to the company will force it to wind up its proposal," an official pointed out.

The Essel proposal had raised hopes in Madhya Pradesh for its ailing entertainment industry by proposing investment in entertainment park and multiplexes.

More than 100 cinema halls have been closed all over the state during the past few years due to heavy taxes, piracy, and cable operators. The company officials could not be contacted.