New Delhi: Reliance Industries Ltd (RIL) on Wednesday announced an end to the strategic partnership between Reliance Ventures Ltd (RVL), RIL's wholly owned subsidiary, and Infrastructure Leasing and Financial Services Ltd (IL&FS) to co-promote the model economic township (MET) project in Jhajjar, Haryana.
The township is being developed by Reliance Haryana SEZ. In January 2011, IL&FS became a strategic partner in this project.
In a statement, RIL said, "The model economic township project will continue to be developed in the industrial model township framework on the directly-purchased land. Development work has been started on about 290 acres, as an industrial colony. Some Japanese majors have established manufacturing units in the MET project."
Last week, RIL had announced its group company Reliance Haryana SEZ had returned 1,383.68 acres in Gurgaon, which it had acquired from Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) to set up a special economic zone (SEZ).
Reliance Haryana SEZ is a joint venture between RVL and the government of Haryana, through HSIIDC. The venture was established to develop the SEZ/the MET project, along with other infrastructure facilities in Haryana. HSIIDC has also exited the joint venture.
In 2007, HSIIDC had transferred 1,383 acres to Reliance Haryana SEZ to develop an SEZ. On July 14, 2010, the Haryana government had approved the development of the SEZ on this land, as well as the development of the MET on the directly-purchased land.
However, in March 2011, the Union government withdrew the fiscal concessions (exemption of minimum alternate tax and dividend distribution tax) for the SEZ. "Consequently, in January 2012, Reliance Haryana SEZ offered to return the 1,383 acres, as the SEZ became unviable with the withdrawal of fiscal incentives. On February 7, 2014, the Haryana Cabinet approved the return of the land to HSIIDC at a price much lower than the price at which it was transferred to them. It also approved the exit of HSIIDC from the project," RIL said in a statement last week.
On the directly-purchased land, Reliance Haryana SEZ has developed 290 acres as an industrial colony; a few multinational corporations commenced production at the site in 2012. The company has sought another licence for an additional 415 acres.
The Model Economic Township project is being developed by Reliance Haryana SEZ, a joint venture between RVL and Haryana govt
IL&FS became a strategic partner in this project in January 2011
Last week, RIL announced that RHSL had returned 1383.68 acres of land in Gurgaon acquired from HSIIDC for setting up an SEZ due to revision of strategic priorities
RHSL was established for development of SEZ/model economic township projects and other infrastructure facilities in Haryana