Seeking nod under Land Act: Cabinet to take final call

SHIMLA: The state Cabinet will take the final call on whether to ask JP Associates to seek fresh permission under Section 118 of Tenancy and Land Reform Act 1972 before selling its two cements plants to Ultra Tech Cements, a firm owned by Aditya Birla group in district Solan.

Pratibha Chauhan

Tribune News Service

Shimla, June 20

The state Cabinet will take the final call on whether to ask JP Associates to seek fresh permission under Section 118 of Tenancy and Land Reform Act 1972 before selling its two cements plants to Ultra Tech Cements, a firm owned by Aditya Birla group in district Solan.

Dithering in taking a final call, the Revenue Department has recommended that the Cabinet should take the decision. The file concerning sale of the two cement plants of JP Associates at Baga and Bagheri in Solan district has been referred to the Law department. The file will be returned to the Industry department which will place the matter before the Cabinet.

Sources said that the Revenue Department has made it very clear to the officials of JP Associates that they will have to pay the registration and stamp duty amount when the ownership of the two cement plants is changed. The deal between JP Associates and to Ultra Tech Cements has already been ratified by the National Company Law Tribunal at Allahabad.

The JP group is, however, keen that the state government gives them exemption from seeking fresh permission under Section 118 of the Tenancy and Land reform Act 1972 and the process of transfer of ownership is smooth. However, as per rules fresh permission has to be sought in case there is change in ownership of land in case of any project involving land.

Since the land involved in the two cement cases is over 6,500 bighas, revenue officials are treading very cautiously. This land involves – acquired land, land leased by the state government and the one purchased after seeking permission under Section 118. “Since the state government has leased land to JP Associates, there will be a tripartite agreement between JP Associates, Ultra Tech Cements and the Industry Department. Hence, the clearance from the government is essential before the deal if formalized,” said sources.

The JP Associates had commissioned the two projects in 2010 with each one of them at Baga and Bagheri having a capacity of two million metric tonnes each. The JP group is selling these two projects to improve its financial health and debt position. It had also sold off one of its most important asset — the 1,000 MW Karcham Wangtoo and Baspa projects — in Kinnaur district to the JSW group to reduce its debts some time back.