Singapore firm upset with govt for slow progress on projects

Written by Rohit Khanna | ROHIT KHANNA | Kolkata | Updated: Aug 28 2009, 07:23am hrs
Dissatisfied with the pace of work in West Bengal, Prasoon Mukherjee, chairman of Universal Success Enterprises Ltd, said that the government needs to gear up a little more. The company has already made a commitment of Rs 1,25,000 crore in the state over next 10 years including infrastructure building for the proposed chemical hub at Nayachar near Haldia.

They (state government) need to gear up a little more, Mukherjee told FE.

According to Mukherjee proposed chemical hub at Nayachar is a loss making venture for the company. The chemical hub at Nayachar is an expense account for us. We will actually make losses there, Mukherjee said.

USEL can barely recover Rs 1,000 crore from Nayachar against the estimated investment of Rs 11,000 crore. USEL, a Singapore based ompany, has formed a 50:50 joint venture company with Indonesias Salim Group and proposed to set up chemical hub at Nayachar.

The company had earlier asked the state government for almost 5,000 acres for real estate projects to compensate losses.

We were supposed to get almost 5,000 acres from the state government for real estate projects. So far the government has earmarked mere 96 acres, we have not been handed over the land yet, Mukherjee said.

Initially Nandigram was chosen for the chemical hub. Then it was shifted to Nayachar. We agreed to that. But now the government has to make provision for compensating our losses, Mukherjee said. Government had to shift location of chemical hub from Nandigram to Nayachar following violent protests.

Meanwhile the state government is pushing the memorandum of understanding with the Center. Chief minister Buddhadev Bhattacharjee chaired a high-level meeting to issue the notification for the PCPIR area covering Haldia and Nayachar as soon as possible.