Reliance likely to break up Jhajjar SEZ into 5 chunks

MAYUR SHEKHAR JHA

TIMES NEWS NETWORK[ SATURDAY, APRIL 07, 2007 01:12:37 AM]

GURGAON: Trust Reliance Industries (RIL) to roll with the punches. It
has already started discussions with the Haryana government over
modifications to the plans for its giant SEZ at Jhajjar, originally
proposed to sprawl over 25,000 acres. The need for modification has been
necessitated by the revision of SEZ norms by the empowered group of
ministers (eGoM). RIL is considering breaking up the giant SEZ into five
separate zones: one large multi-product SEZ and four smaller ones.

According to sources in the Haryana government, RIL has proposed it will
go ahead with land acquisition in the area. However, further acquisition
will only be aimed at generating contiguity in the 10,000-odd acres the
company has acquired. Sources say contiguity in the project could be
ensured by the acquisition of nearly 5,000 acres more. Then, the company
may use 12,500 acres for one multi-product SEZ, and spin off its
proposed container facility, food processing unit, power plant and
airport into separate projects.

When contacted, an RIL spokesperson declined to comment. Haryana State
Infrastructure & Industrial Development Corporation (HSIIDC) officials,
however, confirmed that efforts to find an alternative have been
initiated by both the parties. "Something has to be done. We have made
headway and there is general excitement in the state, with expectations
of major economic activities and subsequent creation of employment
opportunities. We will definitely go ahead with the project, obviously
adhering to the proposed policy regulations," a Haryana government
spokesperson told ET.

It is, however, not clear if RIL will apply for SEZ status and
concomitant tax exemptions for the airport project. As of now, food
processing units, 1,000 mw-plus power plants and container facilities
catering to the agri sector enjoy tax breaks. RIL had plans for a
captive airport in the SEZ, which it could now move out, though it is
not clear if it could avail the tax benefits.

Uncertainty surrounded the project after the eGoM on Thursday imposed a
cap of 12,500 acres for a single applicant and said the states will not
be involved in land acquisition for SEZs. Moreover, only those projects
will get a go-ahead that have contiguous land. Although RIL has acquired
large tracts of land, it has not been able to strike contiguity as the
area includes several patches that are still owned by local land owners.

As per RIL's original MoU with the Haryana government, the company was
to buy 17,500 acres directly from farmers, and the state was to give the
remaining 7,500 acres. Further, the state was to release its
contribution only to help the company achieve contiguity, that too after
the company had completed its share of land acquisition

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