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Four SEZ Projects Scrapped in Maharashtra Land Acquisition Problems Lead to Scrapping

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Four SEZ Projects Scrapped in Maharashtra Land Acquisition Problems Lead to Scrapping Centre for Monitoring Indian Economy Pvt. Ltd. Home | About Us | Contact Us 01 Aug 2012 2:10 PM from CapEx Suparna Chattopadhyay Four SEZ projects scrapped in Maharashtra Land acquisition problems lead to scrapping Four special economic zones (SEZs) proposed by the Maharashtra Industrial Development Corporation (MIDC) jointly with Videocon Realty & Infrastructure Ltd, Mahindra Lifespace Developers Ltd and Indiabulls Infrastructure Ltd were scrapped by the Maharashtra government on 30 July 2012. All the four projects were announced in 2006. The main reason for scrapping the projects was inability to acquire land. The largest among the 4 SEZs was Videocon Realty & Infrastructure Ltd’s multi product SEZ in Gandheli, Aurangabad. The Rs.70 billion project got its in-principle approval from the SEZ Board of Approvals (BoA) in October 2006. Formal approval on the project was awaited. In October 2007, the company had acquired 500 acres of land out of the total requirement of 6,827 acres. However, acquiring the remaining land was opposed staunchly by local farmers. Videocon Realty & Infrastructure Ltd’s second SEZ project was to come up at Wagholi in Pune district. The company was awaiting a formal approval. In January 2010, the company was requested by the State’s Chief Minister to shift the project from Wagholi taluka to Saswad taluka due to protest from the local farmers. The project was put on hold by the company in January 2011. MIDC with Mahindra Lifespace Developers Ltd had announced an investment of Rs.20 billion to build a multi product SEZ at Karla near Lonavala in Pune district of Maharashtra. The project was announced in February 2006 and received in-principle approval from the SEZ BoA in October 2006. The feasibility report for the project was prepared in May 2009. The SEZ was to be spread over an area of 3,000 acres. No land could be acquired for the project. The multi product SEZ by Indiabulls Infrastructure Ltd with MIDC was to be set up at Raigarh in Thane district. The SEZ BoA gave its in-principle approval to the project in October 2006. The multi product SEZ was to be spread over an area of 6,000 acres consisting of an industrial processing zone of 2,100 acres, a commercial zone of 900 acres, a residential area of 1,500 acres and open space of 1,500 acres. The company had acquired an area of 600 acres in May 2009. 9 projects worth Rs.121 billion were stalled during the week ended 31 August 2012 including the above four. Other projects which were stalled are Builders Association Of India’s cement manufacturing unit in Anantapur, Andhra Pradesh. The investment in the project was around Rs.30 billion to build a capacity of 10 million tonnes in 2 phases of 2 million tonnes and 8 million tonnes each. The project was announced in April 2011 but was stalled in September 2011. The Association revived the project again in April 2012 and acquired 2,000 acres of land. However, when contacted recently by CMIE’s CapEx analyst team, S Madhusudan, Head-Communications of the Association communicated that the project has been abandoned. Marvell Mall Devp Co Pvt Ltd’s Treasure Island mall in Vadodara. The investment was Rs.0.6 billion for a built up commercial area of 0.38 million square feet. Dwarikesh Sugar Inds Ltd’s distillery project in Bareilly, Uttar Pradesh. The project announced in January 2007, was shelved due to non-availability of required approvals. The Rs.0.35 billion unit was to have a capacity to manufacture 60 kilo litres per day of alcohol & its derivatives. Ekta World Pvt Ltd abandoned its plan to develop Santa Maria residential complex in Pune, Maharashtra and Gopal Sponge & Power Pvt Ltd has put on hold its iron ore pelletisation project at Mohda in Raipur district of Chattisgarh. The project was stalled due to poor industrial demand. © 2013, CMIE Home | About Us | Contact Us.
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