Memorandum of
Understanding Chhattisgarh State
Industrial Development Corporation Limited A Govt. of Chhattisgarh Undertaking AND Sunil
Sponge Iron Ltd. At Raipur 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. And 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 project’s 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 Government’s 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 Government’s 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.
--sd-- 2. For Sunil
Sponge Iron Ltd. Kolkata
--sd--
MANAGING DIRECTOR WITNESSES: 1. ................................................ 2.
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