Chattisgarh, Balco MoU for fresh investment
By Our Corporate Bureau | 29 May 2002
Raipur: Chattisgarh's State Industrial Development Corporation (CSIDC) has signed a memorandum of understanding (MoU) with Bharat Aluminium Company Limited (Balco) for a fresh investment of Rs 6,000 crore to expand Balco's operations in the state.
CSIDC has assured all support to Balco for its plans to expand the capacity of Balco's aluminium smelter complex at Korba fourfold from the existing 1 lakh to 4 lakh tonnes per annum.
There will be associated expansions in the bauxite and alumina mining facilities in the state as well as installation of a 600-mw captive power plant, bringing Balco on par with international players. The MoU was signed by Balco managing director C V Krishnan and CSIDC managing director Dr P Raghavan in the presence of Chattisgarh Chief Minister Ajit Jogi.
Speaking on the occasion, Jogi said: “We are a big state with a small government, which is committed to provide good governance and good infrastructure. We will extend all possible support to private investors who wish to join hands with us in the overall development and growth of the state. The fact that we are a power surplus state is our USP and we shall emerge as the power hub of India.“
This large investment in the state comes just after the enactment of the Chattisgarh Investment Promotion Act, 2002, which has set up the State Investment Promotion Board (SIPB), a statutory single-point-of-investor-contact.
Chaired by the chief minister, SIPB provides quick and time-bound approvals on behalf of all departments. As a result of Chattisgarh's initiatives in good governance and good infrastructure, the state has already tied up over 5,000 mw of fresh thermal power generation capacity over the last 12 months.
Under the MoU, CSIDC shall provide all necessary assistance in procuring land for the proposed projects in Korba, including additional land for the coal handling and ash/mud disposal facilities for the power plant. It shall also facilitate clearances pertaining to environment and power.
CSIDC shall also help quick recommendations of the state government to be forwarded to the central government for the grant of mining leases that may be required at any time in future for fulfilling the long-term requirement of raw materials for the projects. Specific bauxite mines have been identified for this purpose at Mainpat and Kawardha in the state.
Among other incentives to these projects, the duty on consumption of electricity shall be waived for a period of 15 years, entry tax in respect of capital goods and raw materials shall be exempted and stamp duty/registration fee shall be waived as per the Chattisgarh's industrial policy.
Krishnan said under Jogi's leadership, the state will provide a world-class industrial environment for industries. “Balco will initiate all necessary steps to implement the projects under the MoU. Balco will continue to contribute to the industrial development and economic growth of the state. It shall also help in developing an aluminium industrial park for down-stream aluminium-based industrial units in Chattisgarh.“
Chattisgarh came in to being on 1 November 2000 as the 26th state of India. Ninth largest in the country, it is the richest state in mineral resources like coal, iron ore, bauxite and diamonds. With its surplus power, social and industrial peace and natural resources the state is poised to become the ideal destination for investors and tourists.