Walchandnagar's port project in choppy waters

Company may opt for Andhra if land issue is not settled.

One of the country's oldest business conglomerates, Walchandnagar group's Gujarat foray has got stuck in choppy waters due to unavailability of land.

Walchandnagar Industries had signed a memorandum of understanding (MoU) in October 2007 for developing port facilities for specialised structures and equipment for oil, gas and other core sectors at Dahej with an investment of Rs 350 crore.

The company is now considering other options outside Gujarat as its demand for land at Dahej is not being expeditiously followed by the state government.

A top official of Walchandnagar Industries has indicated this in a letter to the state government. The company has sought 75-80 acres in Gujarat but is now thinking of opting for Andhra Pradesh.

"If there is more delay, we have a second option ready. The other state government is ready to give us land right away. Gujarat is, however, our prime focus and we would wait for some time," according to a senior official of Walchandnagar Industries.

Government sources familiar with the development said there were various other projects lined up in Dahej and it may take some time to speed up their implementation.

Walchandnagar Industries is also in talks with a foreign partner for the project, the company official said. He however, refused to divulge the name of the firm.

The state government has so far allotted land to at least five companies in Dahej. These include ONGC, Pidilite, Godrej & Boyce, ABG Shipyard and Saraswati Industrial.

Japanese ink-maker Danippon Ink and Chemicals (DIC) is also in the process of acquiring land, government sources said. All these companies are setting up their units in the special economic zone that is being developed by GIDC and ONGC through a special purpose vehicle called Dahej SEZ (DSL).