McLeod Russel to seek nod for investment

McLeod Russel to seek nod for investment

Mumbai: BM Khaitan group’s tea firm McLeod Russel on Thursday said the members of the company’s board will consider the proposal to invest Rs50 crore in the shares of D1 Williamson Magor Bio Fuel by way of postal ballot.

The company in a communique to the Bombay Stock Exchange informed that Mcleod Russel would purchase equity shares in the said company and/or give loan of an amount not exceeding Rs50 crore.

Earlier on 30 July, the board of directors of McLeod decided to invest up to Rs50 crore in the next two years in D1 Williamson Magor Bio Fuel Ltd, a joint venture promoted by D1 Oils of UK and Williamson Magor & Co. Ltd for production of bio-diesel in the East and North-East part of India.

D1 Williamson Magor Bio Fuel has been promoting jatropha plantation among the farmers on their privately-owned wasteland under contract farming arrangements for use of jatropha oilseeds for the manufacture of biodiesel.

The firm plans to undertake plantation of total 200,000ha by 2011-12. The total investment required for development of production facilities up to 2009-10, the year of commencement of commercial production, was approximately Rs300 crore. The long-term internal rate of return on production and manufacture of biodiesel is estimated at 20% and is likely to remain steady over future period, the company added.