Memorandum of Understanding

Between

Chhattisgarh State Industrial Development Corporation Limited (CSIDC)
AND
MONNET GROUP OF COMPANIES

For

Steel and Allied Projects in Chhattisgarh

21st May 2001 at New Delhi

BETWEEN, the Chhattisgarh State Industrial Development Corporation (CSIDC) which is the Investment Promotion Agency of the Government of Chhattisgarh and Monnet Group of Companies (comprising of Monnet Ispat Limited, Monnet Power Limited and others) hereinafter referred to as MIL for combined present and proposed Investment of Rs. 1160 Crores in district Raipur, Raigarh or any other location in the State of Chhattisgarh.

This Memorandum of understanding (MOU) is made on this 21st day of May, 2001, at New Delhi, 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.

MIL, a Company incorporated under Indian Companies Act, 1956 (1 of 1956) and having its registered Office at Mandir Hasaud, Raipur and other locations (hereinafter referred to as MIL which expression shall unless repugnant to the context or the meaning thereof, includes its successors, executors, administrators, representatives and permitted assigns) of the OTHER PART.

AND WHEREAS MIL is desirous of setting up the following manufacturing facilities in the State of Chhattisgarh with present & proposed investment of Rs. 1160 Crores.

Sr.No. Project Capacity Investment

1. Steel Billet / Ingot making 3.0 Lac Tons Rs.75 Crores

facility

2. Structural Rolling Mill 3.0 Lac Tons Rs.60 Crores

3. Coal based Sponge Iron Plant 3.0 Lac Tons Rs. 150 Crores

4. Captive Power Generation Plant 55 MW Rs. 215 Crores

5. Ferro Alloys Production through 50,000 Tons Rs. 70 Crores

Smelting Furnace

Sr.No. Project Capacity Investment

1. Steel Bar & Section making 1.5 Lac Tons Rs.35 Crores

facility

2. Coal based Sponge Iron making 3.0 Lac Tons Rs.150 Crores

facility

3. Steel Ingot making facility 1.5 Lac Tons Rs.40 Crores

4. Coal Mining Project with 1.1 Million Ton Rs.75 Crores

Processing Unit with Washery

5. Power Plant 3 x 7.5 MW Rs.290 Crore

2 x 24 MW

Total Rs. 590 Crores

WHEREAS the Corporation acting on behalf of the Government of Chhattisgarh agrees to provide all help, incentives and facilitate clearances necessary for setting up the aforesaid Projects in the State of Chhattisgarh including facilitating allotment 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 the project 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 for grant of mining leases in addition to the existing applications for the project's requirement.

NOW THEREFORE, in consideration of the foregoing and all other related factors, the Corporation and MIL 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, 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 MIL will set-up the aforesaid project in split location in Districts Raipur , Raigarh and other locations in the State of Chhattisgarh, the cumulative investment of which shall be clubbed together and counted for the purpose of cumulative investment for the applicability of the incentive scheme and the Corporation and State Government agencies will extend fullest cooperation for successful implementation of these projects.

2. The Corporation will facilitate acquisition /allotment of 500 acres land by the State Govt. in districts Raipur, Raigarh and other locations as per rules as required for implementation of these Projects.

3. The Corporation will facilitate recommendation /granting of Mining Leases in addition to the existing for the project's requirement.

4. State of Chhattisgarh agrees the MIL will be given the incentives / tax benefits as per Notification No. A-3-12-95-ST-V(96), dated 7.11.1997 and accordance as per letter of Govt. of M.P. Deptt. of Commerce & Industry dated 19.07.2000 and further updated by Notification No. A-3-74-99-ST-V(48), dated 9.6.2000 and /or Notification No.: A-3-14-92-ST-V(50), dated 03.06.1993 and any new or improved incentives /tax benefits, which may be announced by the new State of Chhattisgarh, will be additionally extended to MIL after signing of this MOU.

For the purpose of Electricity Duty MIL will be given incentives under Notification No.:5857-F-10-2-XIII-90, dated 16.11.1992 and any new or improved benefits under any other Notification /Circular as may be issued by the Govt. of Chhattisgarh will be additionally extended to MIL after signing of this MOU.

1. MIL is agreeable to surrender all such benefits as may become redundant from the date VAT is introduced.

 

 

 

SIGNED AND DECLARED BY :

1. For CSIDC

(A Govt. of Chhattisgarh Undertaking)

(NARAYAN SINGH)

MANAGING DIRECTOR and

Secretary (C&I) , Govt. of Chhattisgarh

2. For MONNET ISPAT LIMITED

(SANDEEP JAJODIA)

Managing Director

WITNESS:

1.

2.