Reliance, Cidco in spat over SEZ land deal delay

Reliance Industries and the Maharashtra urban development ministry are locked in a war of attrition over the delay in allotment of 1,250 hectares of land land for the special economic zone at Navi Mumbai.

The Maharashtra government-owned City and Industrial Development Corporation (CIDCO) has to transfer the land to Navi Mumbai SEZ Pvt Ltd, promoted by RIL.

The land requirement increased from the earlier 450 acres following the commerce ministry directive that a multi-product SEZ must have a minimum plot of 1,000 hectares.

Navi Mumbai SEZ executives said the delay was surprising as CIDCO owned the land and no fresh acquisition was required.

"Had the procedure of land allotment been completed by CIDCO, our SEZ proposal could have got the clearance of the inter-ministerial committee meeting on June 12 itself," one of the executives said.

The inter-ministerial committee "� comprising representatives of commerce, finance and environment ministries, among others "� clears the SEZ proposals.

The executive said the land acquisition for the Haryana SEZ was already over, though the proposal was forwarded much later than that for the Navi Mumbai SEZ. The Haryana government "showed more initiative", he said.

State government officials, however, feel Reliance is overreacting. State Urban Development Secretary Ramanand Tiwari said, "In government (sector), things don't move as fast as in the private sector. Before we take any major decision, we must carry out an extensive consultation process. Currently, we are just doing that and the Navi Mumbai SEZ should show some patience."

According to Tiwari, the original plan was to develop the SEZ in three phases. The plan was to develop it on 450 hectares in the first phase.

However, since the central government has made it mandatory for the multi-product SEZs to have at least 1,000-hectare land, the authorities have, in principle, agreed to hand over the land to the Navi Mumbai SEZ so as to meet the conditions.