Jindal Pipes, Chokhani group to set up MP plant

JCO Gas Pipes Ltd, a company belonging to the DP Jindal group, and the Jagdish Chokhani promoted-Chokhani group, have planned to set up a spiral submerged arc welded pipe plant in Madhya Pradesh.

The project will cost Rs 53.18 core and will come up in the Borgaon industrial area in Chhindwara district within a year.

The company has demanded some concessions from the state government for this venture.

"Jindal Pipes Ltd and Chokhani Business Ltd will set up the plant with an installed capacity of 5,000 metric tones per month. The company has made the payment against a letter of intention issued to it," said a government official.

The company will make helical (spiral) welded pipes, made from coils. (After the coil is uncoiled, it is passed to a trimmer and made into rolls, which is shaped into spiral forms. The spiral seam is automatically submerged arc welded, first on the bottom of the rotating pipe and then on top).

A document submitted by the company and shown to Business Standard says the company has demanded a concession of 50 per cent on power tariff (the two units in the plant will consume power of 1,500-2,000 kva and 4 lakh gallons of water per day), purchase preference for at least 50 per cent of quantities in all state government purchases, an iron ore mine near the site and waiver from all stamp duty and land registration fee for this project.

"The state project implementation and clearance board will consider the sops and concessions in accordance with Industrial Promotion Policy 2004," said the official. The plant will require 100 acres and will create at least 400 jobs. It will contribute Rs 8.72 crore of value-added tax on a turnover of Rs 218 crore.

Despite being a largely tribal district, Chhindwara has attracted big names like Raymonds and Hind Lever. However, dearth of skilled labour and sufficient power remain issues for big and medium industries.