| Memorandum of Understanding MEMORANDUM OF
UNDERSTANDING This memorandum of
understanding is signed on this 13th day of August 2002, Between Chhattisgarh State Industrial
Development Ltd. Wholly owned and acting on behalf of Govt. of Chhattisgarh, Mantralaya,
D.K.S.Bhawan, Raipur (C.G.) 492 001 (hereinafter referred as CSIDC) AND Chmoku Agro & Spices Ltd.
a company incorporated under the Indian Companies Act having its Registered Office at
No.-55, S.V.Complex, K.R. Road, Banglore - 560004 (hereinafter referred as CASL) RECITALS 1. Whereas, the GOVT. desires to establish Food Park
as a Joint Venture between CSIDC & CASL on international standards to procure,
preserve, manufacture, market and trade various Food Items including the Vegetables,
Fruits and other related items such as dairy products ( including Milk Processing) and
also to make available facilities such Cold Storage, Chilling plant and Ware housing &
other infrastructure facilities for the units set up in Food Park at Tedesara & Borai. 2. Whereas, CASL will establish and develop the Food
Park (as per Schedule mentioned in the ANNEXURE) with active support & assistance from
GOVT. & CSIDC, with a capital outlay of INR 500 Millions (out of which INR 100
Millions as equity of Govt. of Chhattisgarh & Govt. of India as well as INR 200
Millions as equity of CASL & its Associates) and the parties have agreed to utilize
their strengths in establishing & developing the Food Park, which will provide
opportunities in establishing various Food Processing units within the Food Park with a
proactive approach for backward integration and the development of Agriculture and Farming
community of the state. 3. Whereas, CSIDC shall allot about 75 acres of land
for the park. The land allotted by CSIDC along with other infrastructure facilities will
be taken as the equity of the Government. 4. Whereas, CASL along with its ASSOCIATES &
VENTURE CAPITALISTS will invest in the form of Debt of Equity or both of INR 400 millions
within a period of 30 to 36 months in Food Park. 5. Whereas, CASL shall organize investment of INR 110
millions in the First year, INR 150 millions in the Second year and INR 240 millions in
the third year for the Food Park. 6. Whereas, CSIDC along with CASL shall take up the
proposals submitted to various agencies including the Government of Chhattisgarh, Govt. of
India and other Govt./NGOs/agencies in India & abroad for the establishment and
development of the Food Park on international Standards. 7. Whereas, CSIDC shall provide water at affordable
rates, as the Food Park will be consuming large quantity of water. 8. Whereas, CSIDC shall provide all the facilities,
concessions & incentives etc., as per the Industrial Policy in force at present &
also the future changes if any applicable in the policy of the Govt. of Chhattisgarh. 9. Whereas, CSIDC shall provide all the facilities
and concessions required for establishing the park by allocating the required Electric
Power at a reasonable rate and also other facilities/concessions as applicable to EOUs. 10. Whereas,
the parties hereby agree that the Food Park will process Fruits & Vegetables &
provide employment as mentioned in the annexure. 11. Whereas,
the parties hereby agree that, CASL will encourage contract & Co-Operative farming
thereby giving impetus to agricultural growth & employment opportunity in the state. 12. Whereas, CASL will constitute a Board of Directors (in
consultation with GOVT. OF CHHATTISGARH) with representatives from GOVT., CSIDC and CASL
while the Principal Secretary of Commerce & Industry & Public Sector Undertaking
shall be Chairman of the CASL. 13. GOVT. & CSIDC will not participate
directly or indirectly as a partner in establishing any other Food Park within the areas
earmarked for the Food Park, unless CASL fails to meet the set objectives and/or deliver
the desired results. This is to ensure that there will be adequate supply of raw materials
for the operation of Food Park & optimum of usage of the infrastructure facilities
created in the Food Park. 14. RESOLUTIONS OF DIFFERENCES
In the event of any differences between the parties hereto, such differences shall
be resolved by mutual consultations.
--sd--
--sd--
Signature of Managing Director
Signature of Managing Director
For & on behalf of CSIDC
For & on behalf of CASL --sd-- In the Presence of Minister of Industry &
Commerce
ANNEXURE A. EMPLOYMENT POTENTIAL IN THE
STATE
DIRECT EMPLOYMENT
TEDESARA
BORAI
Unskilled
50
200
Semi-skilled
10
50
Skilled
5
25
High skilled
0
10
TOTAL
65
285
INDIRECT EMPLOYMENT
Unskilled
1000
Semi-skilled
200
Skilled
100
Highly skilled
50
TOTAL
1350 B. FRUITS, VEGETABLES &
OTHER AGRI. PRODUCTS PROCESSED
FRUITS
VEGETABLES OTHER
FOOD PRODUCTS
Tomato
Carrot
Milk
Mango
Potato
Maize
Gauva
Onion
Soya bean mea
Other Fashion fruits
Tamarind
Spices
Vegetable curry
Pulses
Pickels
Rice Bran Oil
In addition natural Herbal and other Medicinal Raw Materials of value added
extracts will be processed through Super Critical Extraction Process Method. C. SCHEDULE OF IMPLEMENTATION
(Tentative) DATE
ACTION
Before August 31, 2002
Possession of Land
Before Septemer 30, 2002
Site Development
Before November 30, 2002
Civil/Electrical Works
December, 2002
Infrastructure Facilities
December 2002/Jan. 2003
Pre-Processing Plant
Feb/March, 2003
Completion of 1 Phase Buildin
April/May, 2003
Erection of Processing Plant
May, 2003
Balancing of equipment
June, 2003
Trail production
August, 2003
Commercial Production
November, 2003
Second Phase expansion
May/June, 2004
Third Phase expansion |