Mukesh Ambani-promoted Navi Mumbai Special Economic Zone (NMSEZ), which had big plans to promote industrial units, is yet to take off thanks to the non-functional Maharashtra SEZ Act.
Sources in Reliance Industries (RIL) said the company's plans have taken a hit as Maharashtra SEZ Act is not notified yet.
RIL had begun leasing plots at the Dronagiri node, one of the four nodes in NMSEZ, in December 2010, after the Union Ministry of Environment and Forests gave approvals for setting up an international airport in Navi Mumbai.
However, over the last two years, no material sales have taken place.
"There is a general slowdown in the economy across the world and it is hitting the demand. Initially, we had enquiries from a variety of players including retailers and hoteliers.. But thanks to the act stuck in political circles, the plans are suffering," said a senior RIL official.
Navi Mumbai SEZ consists of four nodes: The Dronagiri Node spread over a total area of 1,250 hectares; Kalamboli Node of Navi Mumbai SEZ spreads over an area of about 310 hectares and Ulwe (waterfront and Airport) spread over 80 and 500 hectares, respectively.
The state government’s City and Industrial Development Corporation holds 26 per cent equity in the SEZ, with RIL holding the rest.
The company which had drawn aggressive plans to begin marketing the SEZ has put them on hold for now.
The official added that given the government has put the SEZ act in the freezer, "SEZ units will be practically boycotting Maharashtra and Maharashtra will become a bad word for setting up units in SEZ."
Though retailers such as D Mart and Future group's Big Bazaar were in talks with Navi Mumbai SEZ executives to lease the space, they did not sign any deal with the latter.
Future Group and D Mart executive who spoke to Business Standard, said the companies were in talks with NMSEZ to book space but no deal materialised.
According to a top executive from the real estate company, NMSEZ was leasing spaces to corporates, retailers and others in non-notified area, which was given or auctioned by CIDCO to them.
According to Joy Sanyal, development initiatives at property consultancy Jones Lang LaSalle: "Not only NMSEZ, many SEZs are suffering because the government has not given them approvals. They need government patronage to grow."