gaurav_chugh

The Reliance India Limited (RIL) Special Economic Zone (SEZ) in Gurgaon is on its way to being shelved.
Sources say RIL is expected to return the 1,383.68 acres it got from the government back to the Haryana State Industrial and Infrastructure Development Corporation Ltd (HSIIDC).
The decision comes after RIL chairman Mukesh Ambani met Haryana Chief Minister Bhupinder Singh Hooda in New Delhi this evening. “Since the setting up of the project has been delayed by about six years, we asked RIL to return us our land. They have laid down some conditions but I am hopeful we will be able to get our land back. We will develop this land on our own terms and in accordance with the state’s best interests,” Hooda told The Indian Express. “SEZs have failed across the world and it is no wonder that it has happened here as well.”
This SEZ was to be set up through a special purpose vehicle — Reliance Haryana SEZ Ltd — created after a collaboration between Reliance Ventures, a wholly owned subsidiary of RIL, and HSIIDC. RIL had 90 per cent stake in the project while HSIIDC holds 10 per cent sweat equity in the project.
RIL inked the pact with HSIIDC on June 19, 2006. Last year, RIL sought an extension of the in-principle approval by the commerce ministry till March 2015 but was given a year that ends March 31.
Showcased as a key achievement of the Congress government in the state, the RIL SEZ in Gurgaon, along with its sister project in Jhajjar, was to bring in an investment of around Rs 25000 crore through RIL and another Rs 15000 crore through companies which were to populate the SEZ. Hooda had, on the day of the signing, claimed that the project would create jobs for 5 lakh persons and that the state would earn Rs 10000 crore from the projects.

Officials said the Model Economic Township (MET) at Jhajjar being set by the RIL in collaboration with Infrastructure Leasing and Financial Services Ltd would go on as planned.
The RIL is said to have paid Rs 400 crore for the land. If the land is returned, the HSIIDC will have to pay back RIL this amount along with the annuity that RIL paid to the farmers whose land was acquired by HSIIDC for the project.
In 2006, when the project was conceived, RIL planned to set up a 25000-acre SEZ stretching between Jhajjar and Gurgaon off the Delhi-Jaipur Highway. Later, the company decided to create two SEZs of 12500 acres each in Gurgaon and Jhajjar.
Later it was decided that instead of an SEZ in Jhajjar, RHSL would set up an MET on the lines of an industrial model township (IMT). The RIL is said to have bought over 7000 acres of land in Jhajjar for the project. For the Gurgaon SEZ, RIL is said to have bought 1200 acres of land other than the land given to it by HSIIDC. The company, it is stated, was trying to sort out the problem of contiguity of land for the project.

Source:- Reliance SEZ on way out, Haryana govt wants its 1,384 acres back - Indian Express

Reliance SEZ on way out, Haryana govt wants its 1,384 acres back - Indian Express

gurpreet357

A big loss for DEWay especially Sec 37 project. What a pathetic location it is turning out to be.

All the selling points of the sector being demolished:

1. Biggest selling point - Proximity to SEZ now abandoned
2. Metro Line - Already was highly unlikely now looks totally impossible
3. DEWay - No better than a sector road and that too incomplete

To add to the above existing problems galore:
1. Sewerage Treatment Plant
2. Slaughter House
3. Poor Access to Gurgaon's nicest place due to closeness of manufacturing industries
4. Low income area
5. Huge distance from everything in Gurgaon

I guess Ramprastha's investors would be most worried as resale is not allowed. Others can still get out by selling to the next fool!

Jawhar

A crisis for dwarka and dwarka expressway property price is likely now

ThePunjabi

I guess Hooda never heard of a country named China.

Congress party leaders are fast learners. Now the land returned by Reliance will likely be "sold" in the same manner in which Mayawati sold the land in Noida and Greater Noida.

Krazy Yuppie

Let us see when and upto what extent the rates come down in 37C and 37D areas.

raumybhan

How could that be a loss to Dway only, and not to Gurgaon or Haryana ? Kindly explain.

To me, it is a loss to Haryana since a major investment coming to Haryana/ Gurgaon didn't come.

Blue collar people working in a manufacturing SEZ would not afford a house worth 50 lakhs onwards.

Regarding Dway, this news causes no loss to Dway. The SEZ was not supposed to be an IT SEZ in the first place but was supposed to be a manufacturing SEZ. I have seen various auto SEZs, manufacturing SEZs etc. across various cities like Pune, Surat, Chennai etc. (since I have worked there). The manufacturing SEZs are located out of city, sometimes 50 kms. away from city center because manufacturing invariably causes pollution.
As an example, Volkswagen's largest plant of Asia is situated in Chakan area of Pune in an Auto SEZ where Hero, Bajaj, Mahindra etc have got plants. They will make 10 lakhs cars per year for export in that plant. Now imagine, truck loads of raw materials being carried to this factory day and night, and trailer loads of export ready cars choking traffic all the time. This particular area remains backward and appreciation wise, is worst placed. The reason is that mostly the blue collar employees work in auto/ manufacturing plants whose wages/ salaries don't exceed 10,000 to 20,000 per month. And these factories cause worst pollution and traffic problems.

Gurgaon would do well to create IT SEZs rather than manufacturing SEZs. Manufacturing SEZs should go to lesser populated areas.

Now that Haryana Govt has the land in the middle of city, it will put it to good use hopefully

sikkaji

Thanks raumybhan. This was the point I was trying to make at http://www.indianrealestateforum.com...-post1794.html but you have articulated it so much better. As it is RIL hasn't done squat over last several years so don't understand the word "loss". For white color jobs there are plenty of space in existing IT SEZs/Sohna/GC/GCX in Gurgaon.
The story is not yet over as Hooda as threatened to develop the land. That will mean 12 years of inactivity instead of RIL's 6 .

Is there a sizable population of investors in 37x who were banking on SEZ ? Has anyone driven on the road from NH8 to 37x and seen thousands of blue color workers walking on the roads ? Surely not the crowd to boost your investments.

bharatGGN

very bad news for investors of sec 90, 91, 92, 93, 94, 95, 37x, 99 ... and this should impact the rates of sec 102, 103, 104 too...

smartmanav

@bHARATAgGN : cAN U PLZ EXPLAIN WHY IS IT NOT A BAD NEWS FOR s-83, 84, 86 ??

bharatGGN

yes smartmanav, sec-8x would also be impacted but, they i think 81, 82, 83 being right on NH8 and proximty to IMT may not be that much impacted.