Chhattisgarh scraps 18 MOUs for failure to start projects

Subscribe to Oneindia News

Raipur, Sep 17 (UNI) The Chhattisgarh Government has decided to cancel 18 Memoranda of Understanding (MOUs), which it had signed with various industrial groups for investment, as they did not start work even after three years.

The State Investment Promotion Council, which met under the chairmanship of Chief Minister Raman Singh, decided to cancel 18 MOUs, including the one which it had signed with controversial M/s Pushp Steel and Power.

The decision to cancel the MOUs came at a time when opposition Congress had sought intervention of Governor E S L Narasimhan, requesting to order an inquiry by the CBI into the mining deal involving M/s Pushp Steel and Power, which had signed an MOU with the government proposing an investment of Rs 380 crore in the state.

Opposition Congress had alleged that the government had recommended grant of mining lease to M/s Pushp Steel and Power, a company with a paid up capital of just Rs 2.25 lakh, in a hurry.

With mining lease in hand, this private company's worth had become more than Rs 500 to Rs 700 crore, the opposition had pointed out and demanded a CBI inquiry into the matter.

However, Dr Singh had denied the charges saying that the government had only recommended to the Centre to grant mining lease.

Besides the MOU with M/S Pushp Steel, the State Investment Promotion Board also decided to cancel MOUs signed with 17 other companies, including MOUs with M/s Texas Powerzone, USA, Laitag Asia, London and Lenko Amarkantak Power Limited Hyderabad.

These 18 companies had signed MOUs with the state government, more than three years ago, proposing an investment of Rs 10,345.65 crore, but no work was started till date.

Official sources said the state investment promotion board had reviewed the progress of the MOUs, which the government had signed with various private companies. The meeting was informed that an actual investment of Rs 14,300 crore had taken place so far.

Twenty-four projects had been completed so far, while 23 projects were on various stages of implementation.

UNI

Please Wait while comments are loading...