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Chhattisgarh, Balco sign Rs 60-billion spread pact

BS Correspondent

The Chhattisgarh State Industrial Development Corporation has signed a memorandum of understanding with Balco for a fresh investment of Rs 60 billion to expand Balco's operations in Chhattisgarh.

CSIDC has assured all support to Balco to expand the capacity of its aluminium smelter complex at Korba from 100,000 to 400,000 tonne per annum.

There would be associated expansions in the bauxite and alumina mining facilities in the state as well as installation of a 600 mw captive power plant, bringing Balco on par with international players.

The MoU was signed by C V Krishnan, managing director, Balco, and P Raghavan, managing director, CSIDC in the presence of Ajit Jogi, chief minister, Chhattisgarh.

Jogi said in the statement, "We are a big state with a small government that is committed to provide good governance and infrastructure. We will extend all possible support to private investors who wish to join hands with us in the overall development and growth of the state. The fact that we are a power surplus state is our USP and we shall emerge as the power hub of India."

This large investment in Chhattisgarh comes just after the enactment of Chhattisgarh Investment Promotion Act, 2002, which has set up the State Investment Promotion Board, a statutory single-point-of-investor-contact.

Chaired by the chief minister, SIPB provides quick and time-bound approvals on behalf of all departments. As a result of Chhattisgarh's initiatives in good governance and good infrastructure, the state has already tied up over 5,000 mw of fresh thermal power generation capacity over the last 12 months.

Under the pact, CSIDC shall provide all necessary assistance in procuring land for the proposed projects in Korba including additional land for the coal handling and ash / mud disposal facilities for the power plant. It shall also facilitate clearances pertaining to environment, and power.

CSIDC shall also help quick recommendations of the state government to be forwarded to the Centre for grant of mining leases that may be required at any time in future for fulfilling the long-term requirement of raw materials for the projects.

Specific bauxite mines have been identified for this purpose at Mainpat and Kawardha in the state.

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