Chhattisgarh State Industrial Development Corporation Limited
A Govt. of Chhattisgarh Undertaking
Sponge Iron Ltd.
MEMORANDUM OF UNDERSTANDING
Between the Chhattisgarh Industrial Development Corporation Ltd. (CSIDC) which is the investment promotion agency of the Government of Chhattisgarh and Sunil Sponge Iron ltd., Kolkata for setting up a new mega project of Sponge Iron, Steel Ingots & Billets & 14 MW Captive Power Plant, Coal Washeries etc. at Siltara, growth center phase -II Raipur & other places with an investment of over Rs.105 Crores.
This memorandum of understanding (MOU) is made on this 3rd day of February , 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 and assigns of the first part.
Sunil Sponge Iron ltd. A company incorporated under the Indian Company Act,1956 ( I of 1956) and having its registered office at 6th floor, Crescent Tower, A.J.C. Bose Road, Kolkata -700020 ( hereinafter referred to as SSIL which expression shall unless repugnant to the context of the meaning thereof include its successors and assigns) of the other part.
And whereas SSIL is desiring of setting up a Sponge Iron Steel Plant Project with Captive Power Plant at Siltara Industrial Area phase -II, Raipur with proposed investment of Rs.1 05 Crores in all phases.
S.No. Project Capacity Investment
(Rs. In Crores )
1. Sponge Iron. 90,00 M. T./Annum 34.78
2. Steel Plant 100.000 M.T./Annum 15.155
3. Power Plant 14 M.W. 55.188
Total Rs. 105.11 Crores
WHEREAS the Corporation 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 including Allotment of Industrial developed Land at Growth Centre or other
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 land required for establishing these projects and
permission for optimal drawal of water required for the project from viable sources of
water, as well as facilitate the recommendation of the State Government for the grant of
Mining Leases for the projects requirements.
NOW THEREFORE, in consideration of the foregoing and all other related factors, the Corporation and SSIL 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) The Corporation will facilitate allotment of optimum land required for SSIL at Siltara Growth Center Phase -II, Raipur at rate & Policy applicable for mega projects.
2) The Corporation will facilitate availability of actual requirement of water for Sponge Iron,Steel Plant & Captive Power Plant.
3) The Corporation shall facilitate the availability of all incentives available for the investments of the scale envisaged under this MOU from the appropriate authorities relating to :-
a) Waiver of Electricity Duty on consumption of electricity for a period of 15 years from the Date of commencement of production by the units.
b) Exemption from Entry Tax as per the Industrial Policy and rules thereof.
c) Waiver of Stamp Duty, as per the Industrial Policy and rules thereof.
d) Infrastructure Support as per Industrial Policy and rules thereof.
4) The Corporation in consistence with State Governments Energy and 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 the responsibility of SSIL to obtain the clearances as provided in the laws related to electricity. The SSIL will be allowed to wheel the power from their captive power plant to their sister concerns only but not to any other associates in line with the Captive Power Policy of the State through C.S.E.B. grid for which the SSIL will have to pay wheeling charges, reactive power and parellel charges etc. as prescribed by the board for which an agreement has to be signed with C.S.E.B.
5. The Corporation will facilitate necessary approval/clearances from various departments and statutory agencies such as Chhattisgarh Environment Conservation Board, Forest Department, Water Resources Department, CSEB etc.
6. The Corporation will facilitate grant of Coal & Iron ore mining lease and also facilitate state Governments recommendation to the Government of India for allotment of Coal & Iron ore Blocks.
7. 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 SSIL.
8. SSIL will earmark a separate fund for environmental upgradation and social upliftment of surrounding areas/villages etc.
9. SSIL will facilitate the establishment of Ancillary Industries by SIPB or any other Govt. Agency.
10. SSIL will provide employment to local people as per the State Govt. Policy.
For witness where all the parties here to have set their hands to this 1 MOU on this 3rd day of February , 2003.
SIGNED AND DECLARED BY :
1. For - Chhattisgarh State Industrial Development Corp. Ltd.
2. For Sunil Sponge Iron Ltd. Kolkata
1. ................................................ 2. ................................................