Other States - Haryana   

Govt., Reliance sign mega deal

Special Correspondent

The site, spanning over 25,000 acres, falls in Gurgaon and Jhajjar districts

FIRMING UP THE PACT: Haryana Chief Minister Bhupinder Singh Hooda and Reliance Industries Chairman Mukesh Ambani after the signing of the agreement in Chandigarh on Monday.

CHANDIGARH: The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) on Monday signed a joint venture agreement with Reliance Venture Limited (RVL), a group company of Reliance Industries, for establishment of a multi-product Special Economic Zone (SEZ) in Haryana. The agreement was signed in the presence of Chief Minister Bhupinder Singh Hooda and Reliance Industries Chairman Mukesh D. Ambani.

The Centre had accorded approval in principle in March 2006 for the setting up of this mega project over an area of 25,000 acres. The agreement also paves the way for transfer of about 1,395 acres of land which was acquired by HSIIDC for setting up an SEZ near Garhi Harsaru in Gurgaon district. In return, HSIIDC will receive the cost of compensation paid to the Land Acquisition Collector, nine per cent interest on this amount from the date of payment made to LAC till the payment by special purpose vehicle to HSIIDC and 15 per cent administrative charges on the amount of compensation paid. This would translate into Rs.360 crores as against the compensation of Rs.300 crores paid by HSIIDC.

In addition, HSIIDC would get sweat 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 of Rs. 10 per share for which the HSIIDC would not have to make any payment.

The site, spanning more than 25,000 acres, was finalised by HSIIDC and RVL. The location falls in Gurgaon and Jhajjar districts.

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 and the Corporation would pay back only the cost of land acquisition.

Mr. Hooda described the agreementas a giant stride towards fulfilment of the declaration made by the Government in its Industrial Policy announced in June last year. The policy had set an investment target of Rs. 2 lakh crores and employment for 10 lakh people in the next 10 years. The SEZ alone would catalyse an investment of over Rs. 1 lakh crores and generate direct and indirect employment for more than 5 lakh people, he claimed.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Govt., Reliance sign mega deal
Plan for power plant, cargo airport

Copyright © 2006, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu