MP's agro industry projects still on paper

Madhya Pradesh is yet to emerge as an agri-destination for investors. Agri-processors, research institutes, and food producers have not made any moves even after one and a half years of entering into pacts with the state government.

"Except those interested in bio-diesel plantation, hardly any firm has submitted a detailed project report," a highly-placed source in the farmer welfare and agriculture development department said.

Investors say the documentation and official clearance process is very slow in Madhya Pradesh.

Ruchi Soya Industries, Mission Bio Fuels India, LT Overseas Pvt Ltd, Great One Oils Pvt Ltd, DN Oil Pvt Ltd and Morena-based KS Oils and others have reportedly been allotted land for bio-diesel (jatropha) plantation.

Six companies had proposed a combined investment of Rs 2,205 crore for jatropha cultivation. "The land has been allotted to them on a pilot basis for two years; if they successfully cultivate jatropha, the lease will be extended," said the source.

Ruchi Soya has proposed Rs 1,000 crore, Mission Bio-fuels Rs 250 crore, KS Oils Rs 200 crore, LT Overseas Ltd Rs 250 crore, Great One Oils Rs 5 crore, and DN Oils Pvt Ltd Rs 5,000 crore.

The state government had amended land allotment rules, Acts and provisions to create a new “Non-Forest, Non-agriculture land Policy 2006”.

As many as 90 corporate houses had promised a combined investment of Rs 6,896 crore during the Agri-Business Meet organised last year in May. Of those, 50 companies signed MoUs for less than Rs 5 crore for a combined investment of Rs 200 crore.

The state agriculture department has formed a committee to pursue investors. A “Food Processing policy” to offer concessions and sops has yet not come out.