LT Overseas signs MOU with MPSIDC

LT Overseas Ltd has announced that the Company has signed a MOU with Madhya Pradesh State Industrial Corporation Ltd Corporation, Bhopal.

Memorandum of Understanding:

This MOU is executed in Khujuraho on January 16, 2007 between:

Madhya Pradesh State Industrial Corporation Ltd, a wholly owned undertaking of Government of Madhya Pradesh, having its registered office at Bhopal, Madhya Pradesh, India (MPSIDC which expression shall unless repugnant to context include its successors and permitted assigns) as party No.1.

and

The Company, a company registered under the provisions of Companies Act 1956 having its registered office at New Delhi, Delhi — India (LTOL which expression shall unless repugnant to context include its successors and permitted assigns) as party No. 2

RECITALS:

1. Whereas in order to promote industrialization the State Government is inviting capital investment by assuring required infrastructure facilities, incentives, concessions, and all necessary clearance from single window.

2. Whereas party No. 2 is interested in setting up of its Mega Ultra Modem Rice Milling and Rice Food Processing project in Madhya Pradesh, involving an investment of Rs 60 Crore (in three phases starting with Rs 15 Crore in first phase), keeping in view of the promotional assurances given by the State.

3. Party No. 2 will work for uplift of farmers through extension activities in Districts of Hoshangabad, Raisen, Vidisha, Betul and wherever possible to grow premium quality paddy. This will result in better income of farmers to approximately 70000 hectare which is presently under paddy cultivation.

4. As on date farm yield per hectare for rice is 1054 kilograms which sells at an average price of Rs 6 per Kg. Party No 2 will work to increase the farm yield through extension activities to 3900 kg per hectare for associated farmers. Price of premium grains will be Rs 9 per kg. As a result farmer's incomes to grow up to Rs 35000 per hectare instead of present Rs 6324 per hectare.

5. Party No 2 will process paddy around 50000 MT per annum in the first phase and will expand to process 150000 MT paddy per year in phased manner in three phases.

6. Both the parties agree as under:

(i) Whereas the Party No. 2 will get all Mega Project benefits provided by State Government.

(ii) Party No 1 agrees to facilitate Party No 2 for extension services through Government bodies and to use extension centers of Agriculture Department of the Government.

(iii) Party No 1 will facilitate various clearances needed for the establishment of the project.

(iv) The party No 1 will take up matter before the Apex Level Empowered Committee for promotion of investment for additional customized package as desired by Party No 2 for appropriate decision.

Source : Equity Bulls

Keywords