Govt of Chhattisgarh - MOU Between CSIDC & VISA INDUSTRIES LIMITED

MEMORANDUM OF UNDERSTANDING
Between
CHHATTISGARH STATE INDUSTRIAL DEVELOPMENT CORPORATION LIMITED,
RAIPUR, C.G.
AND
VISA INDUSTRIES LIMITED
Kolkata
At
Raipur

Dated 5th March, 2003

MEMORANDUM OF UNDERSTANDING

BETWEEN, the Chhattisgarh State Industrial Development Corporation (CSIDC) which is the Industrial promotion agency of the Government of Chhattisgarh and Visa industries limited, kolkata for a total proposed Investment of Rs. 1015 Crores.

This Memorandum of understanding is made on this 5th day of March 2003, at Raipur, between CSIDC (hereinafter referred to as the “CSIDC” which expression shall, unless repugnant to the context or the meaning thereof include its successors and assigns) of the FIRST PART.

AND

Visa Industries Limited (hereinafter referred to as “Visa” which expression shall unless repugnant to the context or meaning thereof, includes its successors, executors and assigns) of the OTHER PART.

AND WHEREAS Visa is desirous of setting up the following manufacturing facilities in the State of Chhattisgarh with Proposed Investment of Rs. 1015 Crores :

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Plant/Facility Installed Capacity Project Cost

(Rs. crores)

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A. At Raigarh :

1. Coal based Sponge Iron Plant 4,50,000 TPA 180.00

2. Captive Power Plant 105 MW 300.00

3. Steel Plant 2,00,000 TPA 40.00

4. Ferro Chrome Plant 75,000 TPA 50.00

5. Captive Coal Mine & Washery 20,00,000 TPA 260.00

B. At Korba :

1. Merchant Coal Washery 5,000,000 TPA 125.00

2. FBB Power Plant 20 MW 60.00

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Total 1015.00

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WHEREAS the CSIDC acting on behalf of the Government of Chhattisgarh agrees to provide all help, prevailing incentives and facilitate clearances necessary for setting up the aforesaid Projects in the State of Chhattisgarh through the intervention of the CSIDC under the Chhattisgarh Investment Promotion Act, 2002 (hereinafter referred to as the "ACT") including facilitating the acquisition of private land consistent with the various Constitutional and Statutory provisions relating to such transfer of land as applicable to the area of the projects; expedite allotment of Government/Private land required for setting of these projects and permission for optimal drawl of water required for the project, from viable sources of water, as well as facilitate recommendation of the State Government to concerned Ministries/Departments for grant of leases for Coal, Iron Ore for the project’s requirements as per existing policy of the Government.

NOW THEREFORE, in consideration of the foregoing and all other related factors, the CSIDC and VISA have agreed to do and hereby execute this 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 VISA will setup the aforesaid projects in the State of Chhattisgarh, wherein the CSIDC and the State Government agencies will extend all necessary assistance and fullest cooperation for successful implementation of these projects.

2. The CSIDC will provide all necessary assistance in procuring optimum land required for the Project free of all encumbrances as required for the implementation of these Projects :

(a) At Raigarh for the Integrated Steel cum Sponge Iron Project with Captive Power Plant & Ferro Chrome Plant.

(b) At Korba for the Coal Washery and Captive Power Plant.

3. The CSIDC shall initiate all necessary steps for the grant of expeditious approvals under the purview of the State Government for the speedy implementation of the Projects. Specifically, the CSIDC shall assist in obtaining clearances from the relevant agencies such as the Chhattisgarh Environment Conservation Board, Chhattisgarh State Electricity Board, other Departments and authorities under the control of the State Government.

4. The CSIDC shall facilitate permission from the appropriate authority under the State Government for optimal drawl of water from viable sources for operation of the aforesaid projects at prevailing rates, as per requirement.

5. The CSIDC will facilitate State Government’s recommendation to the Ministry of Coal and other concerned Departments of Government of India for allotment of suitable Captive Coal Mines in Chhattisgarh, as per the policy of the State Government.

6. The CSIDC will facilitate State Government’s recommendation to the Ministry of Steel and other concerned Departments of Government of India for allotment of suitable captive iron ore mines in Chhattisgarh or in Orissa State.

7. The CSIDC consistence with State Government Energy & Captive Power Policy with regard to establishment of captive power plant by the investor shall assist in obtaining expeditiously all statutory and non-statutory clearances required for implementation of power plants in the State from the competent authorities. It shall be responsibility of the company to obtain the clearances as provided in the laws related to electricity.

8. The CSIDC will facilitate State Government’s recommendation to Ministries of Coal & Mines, Power, Steel, Environment and Forest of the Government of India for necessary approvals, clearances and sanctions.

9. The CSIDC shall ensure that all incentives available to Mega Industrial Projects in the state e.g. Entry Tax, waiver of electricity duty and stamp duty will expeditiously granted, as per the existing policy of the Government.

10. The industry should earmark separate funds for environmental upgradation and social upliftment of surroundings areas/villages etc., to maintain the ecological balance.

11. The status and progress of acquisition of land, water resource management, power supply arrangement and other infrastructure facilities shall be monitored on a continuing basis by CSIDC or any other empowered authority, and at such frequency as may be mutually agreed.

12. Any new or improved incentives, which may be announced by the Government of Chhattisgarh after signing this MOU shall be additionally extended to VISA, as per the provisions there on.

13. The VISA will facilitate for setting up of ancillary industries by CSIDC or any Government agency.

14. The VISA will provide employment to local people as per the Govt. policy.

15. VISA will initiate all necessary steps to implement the projects under the MOU with a view to contribute to the industrial development and the economic growth of Chhattisgarh state.

For witness whereof the parties hereto have set their hands to this MOU on this day of 5th March, 2003.

SIGNED AND DECLARED BY :

1. For CSIDC

(A Govt. of Chhattisgarh Undertaking)

--sd--

(R.C.Sinha) ................................................

MANAGING DIRECTOR

2. For Visa industries limited

--sd--

(Vishambhar saran) ................................................

Chairman

WITNESS: WITNESS:

1. ................................................ 1. ................................................

2. ................................................ 2. ................................................