MESCO had sought MIDC land at Rs 100/sq m

MESCO is a non-profit organisation with a turnover of Rs 75 crore and as of 2011, marked a profit of Rs 21.69 crore. It may be noted that in the past four years, MESCO has not been audited and the file does not mention as to how this figure was arrived at.

It took three years for MESCO to generate Rs 7 crore for the land. MESCO roped in Big Consultants as consultant for the project. On June 15, 2011, Big Consultants wrote to Col V V Jadhav, project manager, MESCO that the project will need Rs 8.77 crore as construction cost.

From 2009 till date, MESCO knocked on the doors of almost five banks for loans and all of them rejected its application. In a proposal MESCO also asked the Government of Maharashtra to sanction a loan of Rs 10 crore with a payback period of 10 years. The loan proposals varied, in one instance it was mentioned as Rs 15 crore with a payback period of 15 years and in another undated report, the cost was estimated at Rs 19.35 crore, which was later projected at 22.85 crore.

"The industrial estate will have defence-oriented production units, an incubation centre, a training centre, metallurgical labs, inspection and testing labs, a design centre, and raw material banks," the project statement says. A feasibility study, in spite of land cost climbing seven times higher than proposed, does not form part of the file.

On March 4, project manager for MESCO wrote to Dharmendra Prakash, joint development commissioner, MSME, Government of India requesting support.

On December 28, R G Kulkarni, GM, MESCO wrote to Tata Strategic Management Group for preparation of a business plan for setting up a Mahasainik Industrial Estate. There was no reply.

Jatkar said, "We are supposed to get a loan of Rs 10 crore from the MSME."

... contd.

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