RIL, IL&FS snap alliance for Haryana township project
06 Sep 2014
Reliance Industries Ltd on Wednesday announced a mutual and amicable annulment of the agreement for strategic partnership between Reliance Ventures Ltd, its wholly owned subsidiary, and Infrastructure Leasing & Financial Services Ltd (IL&FS) to co-promote the Model Economic Township (MET) project of Reliance Haryana SEZ Ltd (RHSL).
The MET project is being developed by RHSL, a wholly owned subsidiary of RVL, in the Industrial Model Township framework. IL&FS became a strategic partner in this project in January 2011.
The MET project will continue to be developed in the Industrial Model Township framework on the directly purchased land. Development work has been started over 290 acres of land as an industrial colony. Some Japanese majors have established manufacturing units in the MET Project.
"On the directly-purchased land RHSL has developed 290 acres as an Industrial Colony where some multi-national corporations commenced production in 2012. The company has sought another licence for an additional 415 acres," the statement said.
"Reliance Haryana SEZ Limited (RHSL) on Friday (Aug 29) returned 1,383.68 acres of land in Gurgaon acquired from HSIIDC for setting up SEZs due to revision of strategic priorities," the company said in a statement here.
RHSL, a joint venture between Reliance Ventures Ltd (RVL) and the Haryana State Industrial and Infrastructure Development Corp (HSIIDC), was established for developing SEZs and Model Economic Township (MET) projects in Haryana.
HSIIDC has also exited the JV and the project, the statement added. The SEZ project was located in Gurgaon and Jhajjar districts of Haryana.
The Haryana government had, in 2010, approved the development of the SEZ over the land transferred by HSIIDC in Gurgaon and development of a Model Economic Township on the directly purchased land.
"In March 2011, the Government of India withdrew the fiscal concessions of exemption of MAT and DDT for the SEZs," the statement said.
"Consequently, in January 2012, RHSL offered to return the 1,383 acres as SEZs became unviable with the withdrawal of fiscal incentives," it added.