The land that will be leased is going to be used to grow tea and Pongamia Pinnata, a plant used for biofuel and industrial chemical production. The bio fuel will be used for vehicles, while the chemicals will be used for the textile industry.
The Agricultural Investment Support Directorate, headed by Essayas Kebede, gave 5,000ht of land to Verdanta Harvest Pvh and 10,000ht to Shapoorji Pallonji after examining their business plans. Shapoorji's request, however, was for 50,000ht.
Verdanta's plot is around Tepi, in the the Southern Nations and Nationalities and Peoples (SNNP) Regional State. Land is being searched for Shapoorji, which is growing a plant never before grown in Ethiopia.
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 two companies are already trying to recruit human resources from Jimma and Haromaya universities," Essayas said.
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 Br each from their own sources.
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