Furore over Reliance SEZ plans

Opposition parties in Punjab, Haryana allege land allotted to Reliance at modest costs

The mega projects proposed by Reliance Industries Ltd in Punjab and Haryana are getting embroiled in controversy with the opposition parties in the two states claiming that the land has been provided to the corporate giant at a modest cost.

The Mukesh Ambani-led Reliance Industries Ltd signed an agreement with the Haryana State Industrial Development Corporation (HSIDC) on 12 June, 2005 to set up a 25,000 acre special economic zone, understandably the largest in India.

A contract in this regard will be signed between Reliance Ventures Limited, a 100 per cent subsidiary of Reliance Industries Limited, and HSIDC on 12 June for the development of 1,500 acre land at Ghari Harsu, Gurgaon as SEZ.

The state government announced the SEZ at Ghari Harsu in 2003 and spent two years (January 2004 - January 06) in acquiring the land for the first SEZ in Haryana.

Talking to Business Standard, Sampat Singh, former finance minister of Haryana and a leader of INLD (Indian National Lok Dal), said that the government fails to explain why Reliance is getting the land already acquired by HSIDC where as other players have to procure it on their own.

"While all states adopt the route of competitive bidding for such projects, the Haryana government has done it surreptitiously," he said.

He claimed that the state government has formulated a policy regarding the acquisition of land for private developers and public-private partnership for setting up SEZs, and a special clause has been added to benefit the Reliance Industries.

The Shiromani Akali Dal in Punjab is also up in arms against Amarinder Singh's government for providing land to RIL for setting of rural hubs in the state. The chief minister's situation has become precarious as he is also being targeted by his own partymen.

Though Amarinder Singh claims that the proposed project by Reliance will spearhead holistic development of rural Punjab, opposition leaders are viewing the move as an unfair means of spending public money.

They told Business Standard that they would seek legal action to refrain the government from spending public money in favour of corporate houses.

Punjab and Haryana have traditionally been agricultural states. Though of late corporate giants have started showing interest in this part of the country, the opposition by political parties towards approval of projects might put the issue of development on the back burner.