MP to allot land to 11 firms for jatropha cultivation

As many as 11 firms will be allotted around 22,000 hectares of land for jatropha cultivation to produce bio-diesel in Madhya Pradesh.

In a recent decision, the state government curbed the companies’ demand of 90,000 hectares of land to only 22000 hectares, which, according to a senior government official, “will see a combined investment of Rs 3,200 crore.”

However, insiders in the state government, expressing concerns to Business Standard, said this was an exercise of allotting land to industries through the back door.

“The identified land belong to areas where the poorest of the poors live. They are Jhabua, Barwani and Shivpuri where landowners will hardly protest,” said insiders.

Mumbai-based Ruchi Soya Industries, Delhi-based Mission Bio Fuels India and LT Overseas Pvt Ltd, Great One Oils Pvt Ltd, DN Oil Pvt Ltd and Morena-based KS Oils are the major ones among those who have demanded a huge chunk of land for bio-diesel cultivation.

“There are eleven companies who have evinced their interest in producing bio-diesel. They initially demanded more than 600,000 hectares of land but the state government reduced it to 2,000 hectares for each investors. After successful completion of the project within two years from now, the companies will be awarded lease of land for a period of 28 years on an annual fee (Rs 500 per hectare) basis,” VS Niranjan, managing director, MP State Agro Industries Development Corporation, told Business Standard. The fee will go to gram sabha (a village level governing independent body).

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