India investment hurting us

With the Environment Ministry taking a tough stand on the Lavasa project,the chairman and managing director of HCC on Friday said it was hurting the company to invest in India.

It is hurting us to invest in India due to so many controversies and court issues that we have been undergoing phase by phase. Lavasa Corp has been losing around Rs 2 crore a day after the Environment Ministry asked us to halt work at the site. The company has already lost around Rs 100 crore, HCCs chairman and managing director Ajit Gulabchand said. Hindustan Construction Co Ltd holds 64.9 per cent stake in Lavasa.

When asked if he was looking at options outside India,Gulabchand said,Our country has the potential market to grow like other emerging countries. To facilitate this growth,there should not be any hindrance to projects. LCL stopped construction work at Lavasa on November 25,2010. The company is looking forward to talks with the Environment Ministry for a green signal for Lavasa, Gulabchand said.

On 18 January,the Ministry of Environment and Forest said it would consider approval to the Lavasa project on the condition of a penalty and setting up of an environment restoration fund. As of now we do not have any information on the penalties or the amount the government would want the company to set aside for the restoration fund, Gulabchand said.

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