MEMORANDUM OF UNDERSTANDING

Between 

CHHATTISGARH STATE INDUSTRIAL

DEVELOPMENT CORPORATION LIMITED

RAIPUR, CHHATTISGARH

AND

BHUSHAN LIMITED

New Delhi

For

Steel and Power Projects

In the 

State of Chhattisgarh

 

July 11, 2001

At

Raipur

 

MEMORANDUM OF UNDERSTANDING

BETWEEN, the Chhattisgarh State Industrial Development Corporation (CSIDC) which is the investment promotion agency of the Government of Chhattisgarh and BHUSHAN LIMITED (BHUSHAN), NEW DELHI for a total proposed Investment of Rs. 2285 crores in the State of Chhattisgarh. The capital investment in the first phase would be Rs. 550 crores.

This Memorandum of understanding (MOU) is made on this 11th day of July 2001, at Raipur, between CSIDC (hereinafter referred to as the "Corporation" which expression shall, unless repugnant to the context or the meaning thereof include its successors and assigns) of the FIRST PART.

AND

Bhushan Limited (hereinafter referred to as "BHUSHAN" which expression shall unless repugnant to the context or meaning thereof, includes its successors, executors, administrators, representatives and permitted assigns) of the OTHER PART.

AND WHEREAS BHUSHAN is desirous of setting up the following manufacturing facilities in the State of Chhattisgarh with Proposed Investment of Rs. 2285 crores, including Rs. 550 crores in the First Phase.

S.No. Project Capacity Investment(Rs. In crores)
1 Steel Billets & Slabs 1.2 Million tons P.A 1235.00
2 Power 270 MW 1010.00
       
3 Coal Washery 4.5 Million ton P.A. 40.00
  Total   2285.00

 

WHEREAS the Corporation acting on behalf of the government of Chhattishgarh agrees to provide all help, prevailing incentives and facilitate clearances necessary for setting up the aforesaid Projects in the State of Chhattisgarh 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 drawal of water required for the project, from viable sources of water, as well as facilitate recommendation of the State Government for grant of Mining Leases for the project's requirements.

NOW THEREFORE, in consideration of the foregoing and all other related factors, the CORPORATION and BHUSHAN 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 BHUSHAN will setup the aforesaid projects in the State of Chhattisgarh, wherein the Corporation and the State Government agencies will extend fullest cooperation for successful implementation of these projects.
    2. The Corporation will facilitate allotment of approx.2000 acres of land free of all encumbrances by the State Govt. as per rules, as required for implementation of these Projects.
    3. The Corporation will facilitate Government's permission for optimal drawal of water from viable sources for operation of the aforesaid project as per prevailing rates.
    4. The Corporation will facilitate State Government's recommendation to the Govt. of India for allotment of suitable coal blocks for Captive Coal Mines.
    5. Then Corporation will facilitate State Government's recommendation to the Govt. of India for getting the suitable iron ore mines.
    6. The Corporation will facilitate State Government's recommendation to Ministries of Coal, Steel, Power, Environment and Forest of the govt. of India for necessary statutory approvals, clearances and sanctions.
    7. The Corporation will facilitate construction of all weather roads to the site.
    8. The Corporation will facilitate State Government's permission for setting up of Captive Power Plant as per prevailing policy of the State.
    9. The Corporation agrees to facilitate the expeditious grant to BHUSHAN OF ALL State Government incentives in regard to State & Central Sales Tax and other Commercial Taxes and concessions as would be applicable to unit making investment of more than Rs.500 crores in the State of Chhattisgarh as per prevailing policy of the State.
    10. BHUSHAN is agreeable to make investment of Rs. 550 crores within a period of three years from the date of taking possession of land free of all encumbrances.

For witness whereof the parties hereto have set their hands to this MOU on this 11th day of July, 2001.

SIGNED AND DECLARED BY:

    1. For CSIDC

(A Govt. of Chhattisgarh Undertaking)

(DR.P.RAGHAVAN ) ………………………….

MANAGING DIRECTOR and

Principal Secretary (Commerce & Industries),

Govt. of Chhattisgarh

2. For BHUSHAN LIMITED, NEW DELHI.

(SHRI SANJAY SINGAL ) ………………………….

Vice Chairman

WITNESS:

 1. …………………….. A.K. KHUSHU EX. DIRECTOR

BHUSHAN LIMITED, NEW DELHI.

2. …………………….. MD, C.I.D.C.