The SEZ scenario gets hotter as Reliance, along with some major business houses in the country, announces big bang investments. Whatever Reliance does, it does in style. And it makes India Inc. sit and take notice; whether it was its foray into telecommunications or petro-retailing or retailing, it simply overwhelmed the competition with its aggressive entry. So when it revealed its plan to set up Special Economic Zones (SEZs) in the country, competitors did feel the heat. Mukesh Ambani-led Reliance Industries Ltd. (RIL), Indias largest private sector firm, made its intentions clear when it signed an agreement with the Haryana State Industrial and Infrastructure Development Corpn. Ltd. (HSIIDC) to set up the countrys largest multi-product SEZ in the state, to be built over a period of 10 years; SEZs are defined as geographic regions designated for economic development oriented toward boosting inward FDI and exports, and supported by special policy incentives by the government.
Besides Haryana, the group has also plans to set up two SEZs
in MaharashtraNavi Mumbai SEZ (NMSEZ) and Maha Mumbai SEZ
(MMSEZ)in partnership with the state-run City and Industrial
Development Corporation (CIDCO) of Maharashtra. These projects
would entail huge investment; while Haryana SEZ will require
an investment of Rs. 40,000 cr, of which Rs. 25,000 cr will
be pumped in by RIL and the remaining Rs. 15,000 cr is expected
to be invested by other companies which will set up their
units in the SEZ the Mumbai SEZs will require an initial investment
of Rs. 25,000 cr and an additional sum of Rs, 2,50,000 cr
after a decade. Reliance is going to acquire a large area
of Maharashtra and Haryana. MMSEZ will be set up on 10,000
hectares and the Haryana SEZ will be spread over 25,000 acres
of land between Gurgaon and Jhajjar. These plans, if materialized,
are expected to give a strong boost to the domestic economy.
For instance, according to the company, the two proposed zones
in Mumbai alone would contribute Rs. 50,000 cr to the exchequer.
The renewed thrust on SEZ is a part of the government's vision
to improve its share in the global trade. And, SEZs are just
expected to help achieve this goal faster.
The
Haryana SEZ is designed to include a 2,000 MW captive power
generation plant (of which about 500 MW would be utilized
in the SEZ and balance given to the state government). Mukesh
Ambani, the group's chairman, commented: "The project
would focus on new-generation technologies, including nanotechnology
and biotechnology, besides a major emphasis on agro-based
industries." The company has already developed a master
plan, which envisages development of a fully-integrated city
having an airport, rail linkages including from Delhi Metro,
an International Container Depot, and adequate supply of power,
water and communication facilities.
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