Sanghi awaits nod for its Rs 1,000 cr plant

Sanghi Industries Ltd's Rs 1,000-crore plant has not been given clearance for land allotment and other concessions.

The firm had identified two locations, one each in Satna and Neemuch, and had submitted a proposal in this regard.

The apex empowerment committee on investment had not discussed any investment proposal since January 18, 2006. Earlier this week the meeting of the committee had been postponed due to unavoidable circumstances.

"We are waiting for the government's response," a source in the company told Business Standard. The company has also proposed to set up a captive power plant of 60 Mw capacity.

The project will have installed capacity of 3 million tonne per annum. The group also has its cement plant in Kutch (Gujarat). "We have demanded limestone deposits, coal, sales tax and other exemptions from the government," said the source adding, "We will also set up a power plant of 1000 Mw but we will work in a phased manner. We are waiting for the clearance. We have been told that Satna limestone mines will be allocated to us."

Phoenix, an independent firm, has carried out a survey at Satna belt but later it abandoned the mines. Satna reportedly has 2,000 hectares of limestone mines and the deposits have not been utilised. A government source told Business Standard, "The limestone mines may go to the company or to joint venture firm."

The firm needs 600 million tones of limestone reserves and 100 million tones of non-coking coal for captive use in the proposed cement and thermal captive plant. Sanghi had earlier evinced interest in Mandla North and Sialaghoghri.

The firm has requested the state government to recommend it for Dongrital (1&2) and Mahan Mara mines in Sidhi district.

Sanghi has also expressed interest in some unexplored non-coking coal blocks of Northern Coalfields Limited. It has also demanded 2,000 acres of government wasteland adjoining the proposed limestone deposits at Satna or Neemuch.

The other demands of the company include exemption of electricity duty on the captive power plant for a period of 15 years, permission to draw 10,000 mt cu per day of water from a nearby river, 100 per cent exemption on payment of sales tax/ value-added tax or grant of equivalent subsidy for a period of 14 years on cement sales.

75 per cent exemption on sales tax to be given by West Bengal and 100 per cent exemption to be given by North Eastern Charges, 100 per cent tax exemption from stamp duty and registration charges, 100 per cent exemption from octoroi from machinery, 100 per cent exemption from payment of royalty on limestone or coal or any other mineral.