The company has proposed to invest Rs 7,380 crore (Rs 73.80 billion) in setting up a multi-product special economic zone.
Industry Minister Babulal Gaur, when he was chief minister last year, signed an agreement with the company when he visited Chicago, a top official in the department of industries said.
"The state's Project Clearance and Implementation Board has given in-principle approval to the project and has recommended it for central government approval," said O P Rawat, principal secretary (industry), adding, "the company has asked for policy-related concessions and sops. We will acquire and allocate the required land area". The project is expected to create 10,000 jobs.
The company is likely to come up with a foreign equity partner. Company officials could not be contacted. If this project comes up, this will be the first private multi-product
special economic zone.
The state government has been developing a special economic zone for the last six years but it could not be privatised due to bureaucratic hurdles.
As many as 15 companies have been allocated in the existing special economic zone where five companies are operational. However, the second phase of the SEZ is yet to be developed.
Even after Madhya Pradesh boasts of its first operational special economic zone, private companies have kept away from developing private SEZ in Madhya Pradesh so far.
The private parties who evinced interest in developing the second phase will have to wait for another six months since the state government is mulling over floating fresh bids.
'We will invite fresh bids to sell-off the government equity in the special economic zone but the process will take another six months or so,' a senior official in Madhya Pradesh Audyogik Kendra Vikas Nigam told Business Standard.