The decision comes following the failure to get environmental clearance as the project falls under Coastal Regulation Zone
EIH Ltd, which runs luxury hotel chains under Oberoi brand, has put on hold its plans for a project in Navi Mumbai, to be spread over 15-acre land owned by Mukesh Ambani-owned Reliance group.
The decision comes following the failure to get environmental clearance as the project falls under Coastal Regulation Zone.
In 2012, the Oberois inked a pact with Reliance to use the land for mixed-use development. It was part of a deal signed in 2010 wherein Mukesh Ambani acquired a significant stake in EIH Ltd to prevent a hostile acquisition by ITC.
"Our Navi Mumbai project has been put on hold. It got delayed due to Coastal Regulation Zone. The government is rightly concerned with how coastal areas are managed. But all the approvals have not been received," Prithvi Raj Singh Oberoi, chairman of EIH Ltd, said after the annual general meeting of the company.
In April, the Union environment ministry issued a revised Coastal Regulation Zone Notification, 2018, with significant changes.
In 2010, Mukesh Ambani had picked up a strategic 14.8% stake in EIH via Reliance Industries Investment and Holding Pvt Ltd to keep rival ITC Ltd from launching a possible takeover attempt. Since then, Ambani has gradually raised his stake.
Reliance owns about 15 acre land in Navi Mumbai for which it signed a pact with EIH for development of a mixed-use property which was planned to have a 160 to 180-room hotel and luxury apartments as well, Oberoi had said earlier.
"In order to protect and preserve the 'green lung' of the Greater Mumbai area, all open spaces, parks, gardens, playgrounds indicated in development plans within CRZ-II shall be categorised as No Development Zone. A floor space index up to 15% shall be allowed only for construction of civic amenities, stadium and gymnasium meant for recreational or sports-related activities and the residential or commercial use of such open spaces shall not be permissible," the Coastal Regulation Zone notification says.
Oberoi has faced similar woes for its proposed project in Morocco as well.
"The project at Casablanca is also on hold for environmental clearances as it is close to the sea as well. The master plan of the development is undergoing a review by the Moroccan government," Oberoi said on the sidelines of the annual general meeting.
After reopening Oberoi New Delhi in January following a renovation, EIH has decided to renovate its oldest property, Oberoi Grand in Kolkata, where 50 new rooms would be added to its existing 220 rooms at a cost of Rs 100 crore.
Among new overseas properties, EIH is planning a luxury wildlife resort spread over 5,000 acre at Masai Mara National Reserve in Kenya, to be opened in the first quarter of 2020 while a management contract has just been signed for two hotels on Koh Tan Island in Thailand, he said.
IN TROUBLED SEAS
- The decision comes after failure to get environmental nod as the project falls under Coastal Regulation Zone
- Oberoi’s proposed project in Morocco is also on hold for clearances as it is close to the sea
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