Now, Mayawati to review Dadri project

ADAG wants uniform rules for SEZs.

A day after asking the Centre to review Anil Dhirubhai Ambani Group's special economic zone (SEZ) in Noida, Uttar Pradesh Chief Minister Mayawati today said all major decisions of previous Mulayam Singh government, including the ADAG's Reliance Energy's Dadri power project, would be reviewed.

"We will look at all the decisions of the previous government and action will be taken if they are found violating the rules or against public interest," she said at a Press conference today.

She was replying to a query as to whether REL's power project at Dadri, which also has SEZ status, will be reviewed. She, however, said no review would be politically motivated.

"The (Noida) SEZ was reviewed by a committee which found that rules have been broken... We will send a report to the Centre soon, she said.

While the Dadri power project has received in-principle from the Board of Approval in the Commerce Ministry, the Noida multi-product SEZ is at an application stage.

Meanwhile, ADAG company executives maintained that no violation of rules has happened on the proposed SEZ.

A company executive said the proposed land area of the zone, through which the greater Noida expressway runs, has two underpasses and hence does not violate any contiguity norms laid down in the SEZ Rules of 2006.

As per the old SEZ rules, the land area of a SEZ has to be contiguous, which means that there should not be any public utilities like roads or railway lines passing through the zone.

The amended rules allow the setting up of SEZs without a contiguous land area, subject to building of adequate underpasses and concealed overbridges.

"The amended SEZ Rules gives the Board of Approval the power to give nod to zones which have contiguity problems and hence this zone does not violate any norms," the Reliance ADAG sources said. The issue is likely to feature in the next meeting of the Board of Approval on May 31.

On her part, Uttar Pradesh Chief Minister Mayawati refuted allegations that her government's objections to the Reliance ADAG promoted SEZ was politically motivated.

"There are allegations against our government that we are acting with vengeance against Mulayam and his men (Reliance), but my government would only take action against those projects that are against the rules and regulations and those works which are against people's interests," Mayawati said in the national capital today.

However, Mayawati indicated that the UP government will continue to review projects, including SEZs, which were cleared by the erstwhile Mulayam Singh government.

"As mistakes emerge, action will be taken,'' she said in response to a question mentioning Reliance Energy's proposed power project, to be located in a multi-product SEZ at Dadri, in Uttar Pradesh.

The Reliance ADAG source maintained that the company will meet with the UP government and appraise them of the zone's conformity with the SEZ rules. "I do not think the UP government will object to our Dadri SEZ, as the state needs electricity".

The source also pointed out that the SEZ Board of Approvals was already considering proposals of zones like Reliance Industry Ltd's Maha Mumbai zone, which also faces contiguity issues.

"In addition, RIL's Jamnagar zone was upgraded to a multi-product SEZ after adequate overbridges and underpasses were built," he claimed.

Till today, no land has been transferred by Noida to the Reliance ADAG consortium.

"Noida has nearly 500 acres of land under possession, which has been earmarked for the zone. The rest would be acquired. The new acquisition will be done in an area which is already under the Noida master plan and hence there should not be any issues," the Reliance ADAG executive added.

The zone, which was originally envisaged by Noida, had got in-principle approval in 2004. Subsequently, as per the UP SEZ policy, Noida asked private players to develop the zone in November 2006. The Reliance ADAG consortium was given the right to develop the zone in February, 2007.