RIL inks SEZ deal in Haryana

An investment of Rs 40,000 cr expected for the 25,000 acre SEZ, says Mukesh Ambani

A high-profile team of Reliance Industries Ltd, led by Chairman and Managing Director Mukesh Ambani, was in Chandigarh today to sign a memorandum of understanding with the Haryana State Industrial Corporation for setting up a 25,000-acre special economic zone in Haryana. Reliance Industries will invest in this project through its fully-owned subsidiary Reliance Ventures. This will be a multi-product SEZ.

The MoU was signed here by RIL Director Anand Jain and HSIDC Managing Director Rajeev Arora in the presence of Haryana Chief Minister Bhupinder Singh Hooda and Ambani. The RIL has incorporated a company by the name Reliance Haryana SEZ Pvt Ltd to set up the SEZ with a capital cost Rs 25,000 crore.

Talking to the media on the occasion, Ambani said Reliance was encouraged to invest by Hooda and his officials and the scale of operation determined Haryana as the firm's choice. He said RIL and the HSIDC would explore the techno-economic feasibility of the project within 60 days and based on that, the location would be decided.

"Though it is too early to calculate the investment involved in the project, I reckon it will be around Rs 40,000 crore," Ambani said. He said there would be efforts to attract global investments rather than the company's own investments.

Ambani said the benefits of the first phase, in the form of jobs, etc. would start flowing in 24-30 months. The area of infrastructure will include the "existing strength of Haryana" in automobiles, information technology, bio-technology and agriculture.

According to Ambani, it would be a state-of-the-art project of world standards. "We want global investors to choose India over China, Korea, Dubai and Malaysia". In retrospect, the success of large business ventures proves that large-scale investments are sustainable in the long run. So the Haryana government and Reliance Industries have decided to do this huge project jointly.

He said the first phase of the SEZ would be completed in 24 months of the beginning of the execution. Of the total area of the SEZ, 6,500 acres have been earmarked for low-polluting units, 5,000 acres each for basic infrastructure and commercial establishments, 3,750 acres for residential area, 1,250 acres each for institutional area, leisure & entertainment.

Hooda said an SEZ of this magnitude was being set up for the first time in the country and it would generate direct employment for 200,000 people and an indirect employment for another 200,000. He assured co-operation for Reliance.

Referring to his recent visit to Korea and Japan, Hooda said many global giants were keen to invest in India. But infrastructure was a big hindrance. This SEZ would give a fillip to global investments, he said.

The MoU is the culmination of the EoI (expression of interest) signed between RIL and the HSIDC on October 17.