The support facilities planned include a 1,500 hectare private airport and a 2,000 mw power plant.
Rs 25,000 crore SEZ investment will be RIL’s first major one outside western India.
NEW DELHI: Reliance Industries Ltd (RIL), which signed an agreement with the Haryana government to set up India’s largest special economic zone (SEZ) in Gurgaon near Delhi, is aiming to create an ultra-modern city for technology and non-polluting industries that will be just under a quarter of Mumbai’s geographical size. The support facilities planned include a 1,500 hectare private airport (which could become what Gatwick is to Heathrow in London) and a 2,000 mw power plant.
The project, which will involve Rs 25,000 crore of direct investment by Reliance Haryana SEZ Pvt Ltd, is modelled on the enormously successful Shenzhen SEZ in China. While Shenzhen is housed over 32,700 hectares, the Reliance SEZ will use 10,000 hectares (100 sq km). When completed over 5-10 years, it could catalyse investments in the region of Rs 1,00,000 crore.
"The project will catapult India on the world stage in terms of attracting global investment and we intend to compete with China, Singapore, Malaysia, Indonesia and other nations," Reliance chairman Mukesh Ambani said after signing a pact. The SEZ is going to be located near NH-8 in Gurgaon and extend to Jhajar district adjacent to the proposed Kundli-Manesar-Palwal expressway.
This will be the Reliance group’s first major investment outside western India.
About 5% of the 10,000 hectare project area is being earmarked for leisure and recreation. "A possible tie-up with Disney, Time Warner or Universal could be undertaken," said Ambani. A golf course built to standards prescribed by the Professional Golfers’ Association will also be set up in this special zone.
"I see this as a move whereby India is coming to the centrestage of the international economy. It will create opportunity. It will be an aggregation hub and will create unique infrastructure for the whole of North India," Ambani said. The SEZ is expected to attract investment from high-growth areas like nano-technology and bio-technology.
Reliance Industries, through its group company Reliance Ventures Ltd (RVL), will hold 90% equity in Reliance Haryana SEZ. The remaining 10% will be held by Haryana State Industrial and Infrastructure Development Corporation (HSIIDC). The SEZ will be listed on the bourses within three years, even though it may take at least 5 years to be completed.
HSIIDC expects to complete the land acquisition in three years and development activities would be completed in another two years.
Anand Jain, director, RVL, who signed the agreement on behalf of Reliance, said the Haryana SEZ would be distinct from the Gujarat SEZ being set up at Jamnagar. "Haryana will be a multi-product SEZ, focusing on services. Unlike Gujarat SEZ, it will have nothing to do with petroleum or the petrochemical industry," said Jain.
The project would be implemented from the Reliance side by Jain and Shankar Adwal, president, Reliance Industries.
HSIIDC will get Rs 360 crore in the form of total land acquisition costs upfront, 9% interest capitalised as holding cost, and administrative cost at the rate of 15% of the cost of the acquired land. In addition, it would get sweat equity, without any investment, at 10% of the equity.
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