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Maharashtra gets FDI plan for irrigation

Tuesday, 18 Apr 2006
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The Maharashtra government in early April 2006 received its first ever proposal for FDI in an irrigation project, according to reports. The proposal came from from a Malaysian infrastructure company, T J Harmoni Worldwide Sdn Bhd.

The company has shown interest in completing seven major projects in the Krishna Valley by investing around Rs.1,700 crore, in exchange for rights to develop hydro power projects and 1 lakh ha of land. According to the proposal, Harmoni will invest Rs.1,676.20 crore and complete seven projects over a period of four years

  • Bhama-Askhed
  • Gunjwani
  • Neera-Deoghar
  • Urmodi
  • Dhom
  • Jambre 

The proposal also says that, company will spend another Rs.4,663 crore to develop these power stations and it will require another Rs.1,000 crore for debt servicing. Thus company has submitted a proposal of investment of around Rs.7,000 crore in Krishna valley area.

In exchange for completing these projects, the company has asked for the following

  • Rights over the water in dams for 15 years and for contract farming in the area. The company will supply water to farmers free of cost but farmers will have to cultivate crops which the company wants and it will also buy entire produce of the farmers.
  • State government should provide 1 lakh hectare of land on a 99-year lease for palm tree plantations.
  • Has for rights to develop 700 MW hydro power station at Hiranyakeshi and 80 MW station on Koyna left bank canal.
  • Rights to develop mini hydro electricity plants at 43 other dams which will generate 448 MW.
  • Has asked for exclusive rights to develop and operate tourist spots in dam area.

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