The company will soon sign a memorandum of understanding (MoU) with the state government for a feasibility study on the viability of the project. The feasibility study costs will be borne by M&M. These costs will be later treated as part of the project cost and equity contribution from M&M to the proposed joint venture.

The joint venture project will provide valuable services to farmers and boost the state's economy by generating employment opportunities.According to the proposed MoU, the Punjab government will provide full support to the Agro ComEx for becoming the premier commodity exchange in the country.

The state government will not permit any other commodity exchanges to be set up in the state nor participate in or support in any manner the setting up or operation of a commodity exchange anywhere outside Punjab withoutthe prior written concurrence of M&M.

The state has also agreed to ensure that if for any reason the project is developed or implemented by any entity other than the M&M including the state government or its agencies, then the state government will require that entity to pay a development fee of Rs 10 crore to the M&M.

The Punjab government will assist the proposed joint venture company in complying with all procedural requirements and will ensure that all consents, licences, approvals, permits or other authorisations which are likely to be granted by the state government or agencies are granted in a time bound manner.

All trading transactions at the Agro ComEx will be exempted from any type of stamp duties or other levies including sales tax, service tax, surcharge and turnover tax, besides other incentives likely to be given. These exemptions will equally apply to all members, operators and dealers accredited with the Agro ComEx.

The state government will provide freehold land at no cost basis tothe proposed joint venture. The state government will see that the land is free and clear of all liens, charges and encumbrances and also free and clear of all tenancies and occupations.

The Punjab government will be responsible for paying any compensation in respect of any claims arising out of such actions in connection with the acquisition of the land.

After acquiring the land the proposed joint venture company will have the unrestricted right to sell, assign or sublet all or any portion to third parties. Appropriate agencies of the state government will assist and facilitate in any sub-division of the property as may be required to accommodate such sale. Assignment or subletting will not unreasonably delay or witheld their consent to any such sub-division.

M&M, through their subsidiaries, group companies or associates will provide all required services to the Agro ComEx at commercial rates in areas of engineering design, project management, construction, software development, hardware selection andsourcing, networking, securing electronic transactions, e-commerce, setting up, commissioning and managing of communication infrastructure and back office operations.

The proposed MoU clearly stated that neither party shall be liable to the other for any loss or delay or any damage occasioned by or arising out of acts of nature such as unprecedented floods, volcanic eruption, earthquake and other acts such as but not restricted to invasion, act of foreign countries, hostilities or warlike operations before or after declaration of war, rebellion, military or usurped power which may prevent the performance of the contract.

Any dispute or differences arising out of or in connection with this MoU shall be referred to arbitration to be conducted under the Arbitration and Conciliation Act, 1996 or any statutory modification thereof. The venue of arbitration will be Mumbai.