JV for mega Reliance SEZ in Haryana signed

Published: Monday, June 19, 2006, 20:34 [IST]
 

Chandigarh, June 19 (UNI) Overcoming political hiccups within the State Congress, the Haryana Government today signed an agreement with the Reliance Group for setting up India's largest Special Economic Zone spread over 25,000 acres between Gurgaon and Jhajjar, off Delhi- Jaipur Highway involving an investment of Rs 40,000 crore.

Reliance Industries Ltd, the country's largest corporate entity, would pump in over Rs 25,000 crore in the joint venture while the remaining Rs 15,000 crore would be invested by the firms locating their units in the zone.

The project is expected to attract overall user investment of over Rs 1,00,000 crore over a period of time.

The agreement between the Haryana State Industrial and Infrastructure Development Corporaltion (HSIIDC) and Reliance Venture Ltd was signed in the presence of Chief Minister Bhupinder Singh Hooda and the Reliance Industries Chairman Mukesh D Ambani here. It was signed by HSIIDC Managing Director Rajeev Arora and Reliance Ventures Director Anand Jain. '' This public private partnership project would prove to be a foundation for creating infrastructure for 21st century India, ''Mr Ambani said.

To be built on a scale and standard consistent with the international SEZs built in Shanghai and Dubai, the Reliance SEZ would attract at least 15 to 20 top Fortune corporations, Mr Ambani said.

'' Utilisation of land and conditions of lease etc will be strictly monitored by the Development Commissioner to be appointed by the Central Government'', the Chief Minister said after signing the joint venture agreement beween the Reliance firm and the HSIIDC.

He said the State Government has come out with a uniform policy on land acquisition and multi-product SEZ being set up in the State would be given a similar treatment. Mr Hooda's remarks are important in the wake of charges by Congress MP from Bhiwani Kuldeep Bishnoi that the Haryana Government had relaxed rules for the Reliance SEZ.

Initially the agreement was to be signed on June 12 but was postponed because of the political hiccups within the State Congress.

A key showpiece of the project would be an airport spread over 1500 acres of land, to be accessible from Delhi.

As per the SEZ rules 35 per cent of the project area is to be developed as process area, which is 8000 acres. The revenue collected at the rate of 10 per cent for domestic tariff scale is likely to generate annual earnings to the extent of Rs 5000 crore to the State exchequer.

The agreement also provides that in case the Special Purpose Company fails to implement the project, the land being transferred by HSIIDC would be reverted back and the Corporation would pay back only the cost of land acquisition.

The HSIIDC would get equity without any investment at 10 per cent of the total equity. Also, the HSIIDC will be allotted shares equivalent to 10 per cent of the total share capital. These shares will be allotted on face value that is Rs 10 per share for which the HSIIDC would not have to make any payment.

(Eds: Pick up suitably from earlier series).

UNI BBS-MA/PC ARB VV1945

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