MP turns down 11 firms' proposal for land

The MP government has turned down 11 corporate houses' proposals to acquire land of more than 170,000 hectares for jatropha cultivation.

In a meeting today of the Project Clearance and Implementation Board (PCIB), chaired by the chief secretary, the board refused to allot non-cultivable government land to the industrialists. However, the Board has put a cap of 5,000 hectares for "successful industries" only.

Corporate houses like Mumbai-based Ruchi Soya Industries; Delhi-based Mission Bio Fuels India and LT Overseas Pvt Ltd, Great One Oils Pvt Ltd, and DN Oil Pvt. Ltd; and Morena-based KS Oils had reached an advanced stage of negotiations to acquire land. They had asked for a combined land area of 650,000 hectares in Madhya Pradesh, while signing deals with the state government at a convention organised by the department of agriculture in May this year.

Reportedly, another firm, New Delhi based Cosmo Biofuels, had signed a memorandum of understanding with the state government during the Khajuraho Investors Meet this year for a Rs 30.79 crore bio-diesel project.

The company had asked for 2,512 hectares.

Six companies had proposed a combined investment of Rs 2,205 crore in bio-diesel projects.

Of this, Ruchi Soya proposed Rs 1,000 crore, Mission Bio-fuels Rs 250 crore, KS Oils Rs 200 crore, LT Overseas Ltd Rs 250 crore, and Great One Oils Rs 5 crore.

Before the companies enter into the deal, the state government had altered the rules for allotting non-forest unutilised non-agriculture land to private companies and had framed a policy "Non-Forest, Non-agriculture land Policy 2006".

"Industrialists had been eyeing more than 600,000 hectares. All the industrialists had been asked to start a pilot project, initially on 2,000 hectares, for jatropha cultivation," a government source told Business Standard.

The nodal agency, Madhya Pradesh State Agro Development Corporation, had submitted proposals for allotting land for jatropha plantation in 11 districts.

"MP Agro had said the Ruchi group wanted almost 30,000 hectares for jatropha cultivation in eight districts. Mission Biofuels had asked for 22,000 hectares in five districts," a source said.

"The closed-door meeting today decided that the government will not allow industrialists to grab land in name of scientific projects. Industrialists may be awarded 2,000 hectares, where they will have to show results. Only then will the state government allot more land," the source said.

Jatropha plant seeds are known for their petroleum-like properties and have been used as car fuel by some state.