Reliance, Jai Corp invest $1bn in SEZs

A group company of Reliance Industries and Jai Corp, a company promoted by Mukesh Ambani's close associate Anand Jain, have invested nearly $1 billion in Mumbai SEZ, Navi Mumbai SEZ and Revas Port projects so far.

Both the entities intend to invest nearly $10 billion on infrastructure at the SEZs over the next two to three years. All the infrastructure for the SEZs such as roads, bridges and linkages will be completed by then, Jain, who is the chairman of the Navi Mumbai SEZ, said today.

Jain is expecting the notification for the NMSEZ, promoted City and Industrial Development Corporation of Maharashtra (CIDCO) Jai Corp and Reliance, by the end of the month.

For the Mumbai SEZ, the companies have already acquired 5,000 acres of land for a total size of 12,500 acres and acquired another 500 acres for the Revas Port, he said.

Giving the example of how Shenzhen SEZ near Hong Kong and Suzhon near Shanghai have succeeded in generating employment and exports, Jain said the Reliance SEZs have also been located near the metros such as Mumbai and Delhi to emerge as the additional drivers of growth.

On the impact of SEZs on real estate prices, Jain said: "Pudong near Shanghai saw realty prices increase many-fold between 2003 to 2007. In Shanghai also, realty prices went up 50%. So, prices will go up wherever SEZs come up - giving more returns for the investors'' he said.

On the charges of land grabbing by SEZ developers, Jain a lot of mis-communication has overshadowed the advantages of SEZs. "In all the land acquisitions, we have paid the farmers at par with prevailing market prices," he said.