MP likely to allot 90,000 ha for jatropha plantation

As many as nine firms are likely to be allotted 90,000 hectares for jatropha plantation in Madhya Pradesh.

Mumbai-based Ruchi Soya Industries, Delhi-based Mission Bio Fuels India and LT Overseas Pvt Ltd, Great One Oils Pvt Ltd, DN Oil Pvt Ltd and Morena-based KS Oils have reached at an advanced stage to acquire land.

Together, they have asked for 6.5 million hectares. In an agri-business meet organised during May this year nine companies had evinced interest in japtropha (bio-diesel) plantation.

"Nine companies have expressed their interest in bio-diesel plantation. Their proposals will be discussed by Project Clearance and Implementation Board (PCIB) in its next meeting. The board is likely to refer the proposals to a committee that will decide on allocating land area to each company," said a highly placed source in the government.

Six companies have proposed a combined investment of Rs 2,205 crore. Of this Rs 1,000 crore has been proposed by Ruchi Soya, Rs 250 crore by Mission Bio-fuels, Rs 200 crore by KS Oils, Rs 250 crore by LT Overseas, Rs 5 crore by Great One Oils and Rs 500 crore by DN Oils Pvt Ltd. Others have yet to identify land and apply for the same, said the source.

"These six proposals have been considered by district collectors and district committees on investment. They will be put before PCIB meeting in days to come," the source said.

The state government had already altered the rules to allot non-forest, unutilised, non-agriculture land to the private companies and had framed a policy "" Non-forest, Non-agriculture Land Policy, 2006.

Delhi-based Cosmo Biofuels, which had signed a memorandum of understanding with the state government during Khajuraho investors meet this year for Rs 30.79 crore bio-diesel project, has not been offered land. The company had demanded 2,512 hectares of land last year.

Reliance Industries had also proposed to set up a Rs 500-crore bio diesel plant in Madhya Pradesh.

The Energy and Resources Institute (TERI), the technical advisor to the company, and a team of company officials called on Chief Minister Shivraj Singh Chouhan and discussed the proposal. The company had demanded 50,000 hectare. But the state government officials have no clue about the project.