BHOPAL: The extortion from the companies by local politicians, police, bureaucrats and goons has become a big problem for the firms digging sand in various districts. Fed up with extortion, Power Mech Projects Limited is planning to give up mining contracts in Sehore and Bhind. The company did not take the contract in Hoshangabad, just after the mining work had been allotted to them. Power Mech has two and a half years more for the contract. Therefore, the firm will surrender the work in two districts in June after completing the target. The company has a contract of Rs 120 crore in Sehore and that of Rs 90 in Bhind. It is because of the goons in these two districts that the company has incurred heavy loss.
It says unless the government protects the companies, they cannot earn profit. This is the reason why they are planning to pack off from MP. Chief Minister Shivraj Singh Chouhan is going to hold a meeting with the directors of the company, and it is only after that, the company will take a decision. Executive director of the company, Krishna Praveen Kota, says whether the firm continues its work in MP or not will be decided soon. He said that the directors of the company would soon hold a meeting with the chief minister. A decision on the issue will be taken only after the meeting, he said. The contract in Shore and Bhind was for two years, but after the BJP's return to power, it was extended to three years.
It is renewed every year by enhancing 10% of the cost. Kota said that the government had increased the money to be given to the government by 10% this year also.It is correct that the company is planning to surrender the contract of sand mining in Sehore and Bhind, he said. As the company did not take the contract in Hoshabgabad after the work was allotted, the firm had lost security deposit of Rs 25 crore. Besides Power Mech Company, other contractors doing sand mining are in trouble.