Memorandum of
Understanding For 21st April 2003 MEMORANDUM OF UNDERSTANDING
Between the Chhattisgarh State Industries Development Corporation (CSIDC) which is
the industrial promotion agency of the Government of Chhattisgarh and M/s Sanvijay Rolling
& Engineering Limited, Nagpur for setting up a new mega project of Sponge Iron, Steel
Making Plant, Coal Washery, Rolling Mill and Captive Power Plant at Raigarh & other
places with an investment of over Rs.400 Crores.
This memorandum of understanding (MOU) is made on this 21st day of April 2003 at Raipur between CSIDC hereinafter referred
to as the “Corporation” which expression shall, unless repugnant to the context
of the meaning there of include its successors of the first part. A N D
M/s Sanvijay Rolling & Engineering Limited, a company incorporated under the
Indian Companies Act 1956 (1 of 1956) and having its registered office at 9-Imambada Road,
Nagpur 440018 (hereinafter referred to as “SREL” which expression shall unless
repugnant to the context or the meaning thereof include its successors of the other part.
And where as SREL is desiring of setting up a Sponge Iron Project, Steel making
& Captive Power Plant, Coal Washery, Rolling Mill, Iron ore Mining & Coal Mining
etc. at District Raigarh and other places with proposed investment of 465 crores in all
phases.
Plant / Facility
Installed Capacity
Project Cost
in Phases
(Rs. crores) 1. Sponge Iron
3,20,000
120 2. M.S.Ingots & Billets
2,00,000
65 3. Rolling Mill
1,00,000
50 4. Power Plant
40 MW
120 5. Coal Washery
40 6. Coal Mining 7. Iron Ore Mining & other
70 8. Total
465
Whereas, the “Corporation” acting on behalf of the Government of
Chhattisgarh agrees to provide all help, prevailing incentives and facilitate clearances
necessary for aforesaid projects in the State of Chhattisgarh including allotment of Land
at Raigarh and Iron Ore & Coal Mining Blocks in Chhattisgarh consistent with the
various constitutional and statutory provisions relating to the area of the said project
on the “Corporations” initiative as well as through the intervention of the
State Investment Promotion Board under the Chhattisgarh Investment Promotion Act-2002
(hereinafter referred to as the act).
Now therefore Corporation & SREL have agreed to do and hereby execute the MOU
in order to enable such a large private sector investment in the state of Chhattisgarh and
for the aforesaid the parties hereto have agreed upon the terms assurances, obligations
and commitments as set out herein below: 1. It is
agreed by the parties hereto that SREL will set up the aforesaid projects in the state of
Chhattisgarh, where in the Corporation & the state government agencies &
departments will extend fullest co-operation for successful implementation of these
projects. 2. The
Corporation will facilitate allotment of optimum land, free from all encumbrances to SREL
in Raigarh District and other places under prevailing rate as per policy applicable for
mega projects. 3. The
Corporation will facilitate availability of 4 MGD of water for project as per assessment
from viable sources. The Corporation shall also facilitate assistance in laying of water
pipeline from source to the site and will assist in getting necessary clearances,
approvals etc. particularly from Forest & Revenue Departments. 4. The
Corporation shall facilitate all incentives available to investors under this MOU as per
policy of the state Govt. and appropriate authorities under the provision of State
Investment Promotion Act 2002 for the project specifically, it is understood that such
incentives will relates to: A) Waiver of
electricity duty on consumption of electricity for a period of 15 years for Industries
from the date of commencement of production by units which is already provided for in
terms of the Industrial Policy of the State Government of Chhattisgarh. B) Exemption from
Entry Tax in respect of Capital Goods & Raw Materials, incidental goods etc. for the
proposed projects, as per Industrial Policy of the Chhattisgarh Government. C) Exemption from
payment of Sales Tax as per the policy of Government of Chhattisgarh. D)
Waiver of Stamp Duty & Registration Fee in connection with the implementation of the Projects
will include Land, Bank Loan & Mortgage etc. as per Industrial Policy of State. E) Waiver of
service charges in acquisition of land, as per policy of the Government for Mega Projects. F) The Corporation
will facilitate disbursement of infrastructure support to the extent of 25% of the
infrastructure cost, as per Industrial Policy. G) The Corporation
will facilitate assistance with CSEB to provide electricity
to SREL under prevailing terms & conditions and as per Power Policy of the State
Government. 5. Consistent
with the State Government’s policy on Captive Power Plants, Corporation shall assist
in obtaining expeditiously all relevant approvals from CSEB and other competent
authorities, so as to enable SREL to set up the Captive Power Plant and Wheel Surplus
Power to sister associates concerns through CSEB grid after paying charges as prescribed
by the Board and as per Captive Power Policy of Government of Chhattisgarh. 6. Any new or
special incentives which may be considered or announced by the Govt. of Chhattisgarh in
future or after signing of this MOU, the same may be provided to SREL. 7. The
Corporation will facilitate grant of Coal & Iron Ore mining lease and also facilitate
State Government’s recommendation to the Government of India for allotment of Coal
& Iron Ore Blocks. 8. SREL will
initiate all necessary steps to implement the projects under the MOU with a view to
contribute to the Industrial Development & Economic Growth of Chhattisgarh. 9. The
Industry shall earmark separate funds for environmental upgradation and social upliftment
of surrounding areas/villages etc. 10. The SREL will
facilitate for setting up of ancillary/auxiliary industries by CSIDC or any Government
agency. 11. The SREL will provide
employment to local people as per the Govt. policy. 12. The SREL will make
provision as per law for utilization and disposal of Fly Ash generated in their power
projects.
For witness where all the parties hereto have set their hand to this MOU on this
21st day of April 2003. SIGNED AND DECLARED BY : 1.
For CSIDC
(A Govt. of Chhattisgarh Undertaking)
--sd--
(Amitabh jain)
MANAGING DIRECTOR 2.
For Sanvijay Rolling & Engineering Limited, Nagpur --sd--
--sd--
(Ramesh Kumar Pachisia) (Sanjay P.
Agrawal) WITNESSES:
WITNESSES: 1.
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1. ................................................
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