Jaiprakash may get sops for MP project

Jaiprakash Associates Ltd is likely to get concessions and sops for its Rs 676 crore expansion project in Madhya Pradesh.

The company has asked for sops and concessions for the Rs 404 crore and Rs 272 crore expansion plans of its two companies, JP Rewa and JP Bela Cement plant, in Madhya Pradesh.

Although some demands have been rejected by a top-level committee on investment recently, "few of them may be considered," a senior government official told Business Standard.

The company has demanded a special package on the lines of those given by the Punjab government, which gives sops to projects located within a radius of 5 km from the main project.

"The proposal is under consideration," said the official.

The Punjab government, in an order dated April 22, 2005, is offering sops for projects of Rs 100 crore and above in such cases.

The company has also demanded a 100 per cent investment promotion incentive for a period of 10 years, which has been rejected. "The company may get some concessions since government may consider the proposal as a single unit," said the official.

Jaypee has also demanded a set off on purchase of plant and machinery and incidental goods for a period of seven years. It has demanded electricity duty waver for a period of 10 years for its new thermal power plant of 25 MW capacity which is nearing completion at Jaypee Bela Plant.

"A notification is to be issued for offering electricity duty waiver for a period of seven year to all projects above Rs 100 crore," said the official.

The existing plants of the company, namely Jaypee Rewa Plant and Jaypee Bela Plant have the manufacturing capacity of 2.5 million tonnes and 1.5 million tonnes per annum respectively.

The company is under process of expansion to enhance capacity of Jaypee Rewa Plant from 2.5 million tonnes to 3.5 million tonnes and Jaypee Bela Plant from 1.5 million tonnes to 2.5 million tonnes per annum.

Jaypee produces cement of ordinary Portland (OPC) grades 33, 43, and 53 and blends of pozzolana cement namely 'Buniyad' and 'Buland' , and Superplus PPC.