Reliance to list three SEZ ventures soon

Haryana zone to compete with China: Ambani.

Reliance Industries (RIL) today entered a pact with the Haryana government for setting up the country's largest multi-product special economic zone (SEZ) near Gurgaon. The Rs 25,000-crore SEZ is expected to attract investments from Fortune 500 companies.

Immediately after signing the deal, under which RIL seeks to attract third-party investments to the tune of Rs 1,00,000 crore, RIL Chairman and Managing Director Mukesh Ambani told reporters the project, which would house a cargo airport and a 2,000 Mw power project, would be comparable to those in global investment destinations"" China, Malaysia and Singapore.

"The multi-product SEZ will be developed as a world-class hub for manufacturing, services and agro-based industries in the most competitive environment," Ambani said at a joint press conference with Haryana Chief Minister Bhupinder Singh Hooda.

For this purpose, a joint venture company has been floated by Reliance Ventures Ltd, a subsidiary of RIL, and the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC).

Reliance will hold 90 per cent stake in the joint venture, while HSIIDC will have the remaining stake. RIL will have two directors on the board of the newly formed entity, while the HSIIDC will appoint one.

The joint venture company would be listed on the bourses in a time-bound manner, Ambani said, adding, RIL would also be listing its two other SEZs "" at Navi Mumbai in Maharashtra and Jamnagar in Gujarat "" at the same time.

"The Haryana SEZ will create 500,000 jobs and generate revenue of up to Rs 10,000 crore, which in turn will improve the state's per capita income," Hooda said, while dismissing reports of differences within the ruling Congress over the project.

"There is no issue within the party and the decision was taken by the state Cabinet," Hooda said, when asked about Congress MP Kuldeep Singh Bishnoi's opposition to the project.

Sharing details of the project, Ambani said the SEZ would focus on new economy sectors like nano-technology and bio-technology, besides agro-based industries. The project was expected to yield returns of 18-20 per cent, similar to what RIL got from other projects, he said.

State government officials said the capital cost of the SEZ might escalate to Rs 40,000 crore.

Asked whether the project would help RIL strengthen its proposed agri-retail business in neighbouring Punjab, Ambani said there were no synergies between the two projects as the Haryana SEZ was an infrastructure-oriented venture.

The company has already developed a master plan, which envisages development of a fully integrated city having an airport, rail linkages, an international container depot and adequate supply of power, and water and communication facilities.

RIL might also tie up with global giants such as Disney, Time Warner or Universal to establish theme parks and entertainment centres for attracting tourists.

The project will have the potential to generate an export turnover of Rs 50,000 crore and contribute about Rs 10,000 crore per annum to the state government in form of indirect taxes. The infrastructure will be developed by the Reliance Engineering Association Limited, which also executed the company's Jamnagar project.

According to Ambani, this would be the company's largest investment outside western India. He said he chose to invest in Haryana as he was impressed by the confidence shown by Haryana Chief Minister B S Hooda, who on his visit to Mumbai expressed his determination to create a state-of-the-art infrastructure project to generate employment.

"I was carried away by his single-minded focus, that was very much compatible with RIL's philosophy,'' said Ambani. The MoU for the SEZ was signed between RIL and HSIDC on December 12, 2005. The joint venture agreement enables the government to provide land to its private partner.