Reliance, Haryana finally ink SEZ pact

Chandigarh, June 19 | Updated: Jun 20 2006, 06:09am hrs
Reliance Ventures, a group company of Indias largest private sector company Reliance Industries, and the Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC), on Monday signed a joint venture to set up a multi-product special economic zone in Haryana.

At an investment of Rs 40,000, the project will be Indias largest SEZ spread over 25,000 acres. It will be implement by a 90:10 joint venture company, Reliance Haryana SEZ Ltd. Reliance and HSIIDC will have directors in a ratio of 2:1 on the board of the joint venture company.

Speaking on the occasion, chief minister Bhupinder Singh Hooda said, The venture will catalyse Rs 1 lakh crore investment and generate about five lakh jobs (25% jobs for people in Haryana). It will add Rs 10,000 crore a year to Haryanas revenue.

Reliance chairman Mukesh Ambani said the joint venture was expected to generate returns of between 18-20%. He also said a good number of Fortune 500 companies were interested in the proposed SEZ and that the SEZ would have an export potential of about Rs 50,000 crore.


The deal includes building 2,000 mw power plant and international cargo airport
15% of the zone will be for township, 5% for theme parks, hotels, and 3% for malls
RIL to seek investment of over Rs 1 trillion from those interested in setting up shop at the SEZ

The Reliance chairman also said, The JV company is contemplating a cargo airport so that this can be an agri hub for the whole of northern India. Besides, the SEZ will have a 2,000-mw gas-based captive power plant.

The agreement also provides that if the JV company fails to implement the project, the land being transferred to it will be reverted to HSIIDC.

Of the 25,000 acres in the SEZ, low polluting units will occupy 6,500 acres, commercial establishments 5,000 acres, infrastructure projects 5,000 acres and residential units 3,750 acres. About 1,250 acres would be set aside for recreational facilities.