MP asks DP Jindal group to find land

The Madhya Pradesh government has turned down the request of JCO Gas Pipes Ltd for a private land area of 50 acres.

The firm is a joint venture of the DP Jindal group and Jagdish Chokhani promoted-Chokhani group.

JCO Gas Pipes Ltd has proposed a spiral submerged arc welded (SAW) pipe plant in tribal-dominated district Chhindwara of Madhya Pradesh. The project is expected to create 400 jobs.

A state-level committee empowered with Cabinet powers has asked the company to acquire the land for the project on its own.

Madhya Pradesh is facing an acute shortage of land for industries in its industrial areas, in the absence of a land allotment policy. Real estate players have cornered large chunks of land in various areas, leaving no room for industry.

The company requires 100 acres. "The firm had asked the state government to acquire 50 acres of private land. The apex empowerment committee on investment has not accepted the request of the company and has asked it to go ahead on its own," a government official told Business Standard. The company has acquired 15 acres, according to the official.

The project, however, has been awarded mega status, and sops and concessions in accordance with Industrial Promotion Policy. The company is planning to invest Rs 53.18 crore.

The plant will have an installed capacity of 5,000 metric tonnes per month.

Earlier this year, the company had submitted an application asking for 50 per cent concession on power tariff, purchase preference for at least 50 per cent of requirements in all state government purchases, an iron ore mine near the site, and the waiver of stamp duty and land registration fees.

Two units of the proposed plant will consume 1,500-2,000 KVA of power and 400,000 gallons of water a day. The company had said it would contribute Rs 8.72 crore of value added tax (VAT) to the state on a turnover of Rs 218 crore.