Last Updated :
17 March 2010 at 13:40 IST
Ethiopia leases land to Indian firms to grow tea
ADIS ABABA (Commodity Online) : East African state of Ethiopia said it will lease land to two Indian firms, Verdanta Harvest Pvh and Shapoorji Pallonji to grow tea and Pongamia Pinnata, a plant used for biofuel and industrial chemical production.
In a statement issued here Ethiopia’s Ministry of Agriculture and Rural Development (MoARD) said it will soon sign agreements with the two firms in this regard.
According to the ministry, Verdanta will get 5,000 hectares of land while Shapoorji Pallonji will get 10,000 hectare out of a demanded 50,000 hectares.
Verdanta's plot is around Tepi, in the the Southern Nations and Nationalities and Peoples (SNNP) Regional State while land is being searched for Shapoorji, which is growing a plant never before grown in Ethiopia, the ministry said.
Experts deployed by Shapoorji are in the SNNP Regional State studying the feasibility of the area for the plant, according to Essayas.
The company will also set up a factory to process the production of the biogas and chemicals.
The bio fuel will be used for vehicles, while the chemicals will be used for the textile industry.
The lease period for both companies will not be more than 20 years. It is expected that both companies are planning to invest 100 million Birr each from their own sources.
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