GTL Infra turns volatile on relisting

The state cabinet on Wednesday cleared the City Industrial Development Corporation's (Cidco) proposal to handover 1,150 hectares of land to the Reliance Industries Limited (RIL)-promoted Navi Mumbai special economic zone (NMSEZ) Pvt Ltd. The corporation, in turn, will hold a 26 per cent stake in the company.

The decision to this effect was taken at the state cabinet's meeting, which was chaired by chief minister Vilasrao Deshmukh.

As per Cidco's original plans, the corporation was to set up a multi-product SEZ over 450 hectares land in partnership with a private developer. The contract was bagged by SeaKing Infrastructure Pvt Ltd in which RIL subsequently bought a majority state.

Meanwhile, the Centre changed the rules making it mandatory for all multi-product SEZs to have a minimum of 1,000 hectares of land. To meet this, NMSEZ sought additional land from Cidco.

It was after prolonged negotiations with NMSEZ that Cidco finally agreed to give 1,150 hectares of land to NMSEZ in lieu of 26 per cent stake in the company.

Cidco has offered land to NMSEZ at Dronagiri, Ulve and Kalmoboli villages in Navi Mumbai. The 15 per cent area of the SEZ will be developed as residential and the rest will be used for industrial units.

The state cabinet also cleared the proposal of giving a guarantee to the additional short-term loans of 18 sugar co-operatives worth around Rs 26 crore.

Besides, the state cabinet cleared the proposal of signing a memorandum of understanding (MoU) with the Centre and National Bank for Agriculture and Rural Development (Nabard).

The move would help the state government restructure financially weaker co-operative banks and credit co-operative societies and rejuvenate banking credit line for the agricultural sector.