Starting trouble for mega SEZ project

The SEZs are based on the Chinese model, and expected to bring in foreign direct investments and create job opportunities for the locals.

The winning bid for the Navi Mumbai SEZ was from a consortium led by Videocon International Ltd (VIL) whose other members were SKIL, Hiranandani Constructions and the Pune-based Avinash Bhosale Infrastructure Ltd (ABIL). While both VIL and SKIL had 26 per cent stake each, ABIL and Hiranandani had 16 per cent and 6 per cent stake respectively in the project.

However, in a recent communication to CIDCO, SKIL has said that VIL is now out of the project for ‘‘internal’’ and ‘‘unforeseen’’ reasons and that SKIL itself is now the leading consortium partner with 52 per cent stake. It has sought approval to change the structure of the consortium and has promised to rope in International Finance Corporation, WSP group UK and Ushah Tegas of Malaysia for ‘creating a brand name for NMSEZ in the international market.

However, when CIDCO sought VIL’s views on SKIL’s communication, the Videocon group denied that it had abandoned the project in SKIL’s favour.

‘‘As far as I know we are still the lead consortium partner in this project. I have to speak to SKIL’s promoter Nikhil Gandhi on May 9th about this after he comes back from abroad,’’ said Videocon Group chairman, Venugopal Dhoot. ‘‘I am surprised at this letter from Cidco,’’ he told The Indian Express.

When contacted, a CIDCO official, on condition of anonymity, said to avoid legal hassles for the project, the state will have no other option but to re-tender the project now.

This is not the first CIDCO project running into problems. Recently, land allotments by CIDCO at concessional rates to newspapers was cancelled by the Bombay High Court. Similarly, an allotment to the Rahejas by CIDCO has been hanging fire due to a PIL.

In addition, land given to CIDCO’s own officials for building bungalows is being probed by Additional Chief Secretary Nand Lal.