Navi Mumbai SEZ to speed up

Navi Mumbai SEZ (NMSEZ), an SPV formed by Maharashtra state’s infrastructure arm, City and Industrial Development Corporation (Cidco), RIL chairman Mukesh Ambani and Jai Corp, controlled by Anand Jain, hopes to put the project on fast track by the end of this year.Commercial activities are likely to begin on at least 150 hectares of this SEZ in about a year. However, an adjacent SEZ, known as the Maha Mumbai SEZ (MSEZ), would take longer to fructify.“Things are moving pretty fast as far as NMSEZ is concerned. But there appears to be a deliberate pause in movement over Maha Mumbai SEZ. Land acquisition and rehabilitation issues seem to have forced the promoters to go slow on Maha Mumbai project in this phase of political uncertainty,” a senior Cidco official.Entrepreneur Nikhil Gandhi also has a stake in NMSEZ.Mr Ambani and Mr Jain are developing a mega SEZ near Mumbai. The project acquired the ‘controversial’ tag due to protest over land acquisition in parts of the proposed site. The project consists of two SEZs — NMSEZ and Maha Mumbai SEZ. But the land acquisition problems are limited to the latter. “We expect to go to the commerce ministry’s board of approvals (BoA) for MSEZ only by the first quarter of 2009. It could be for around 1,000 hectares in the first instance,” disclosed a company official promoting the SEZ. The combined size of the two SEZs could come to over 7,000 hectares if the promoters are successful in their land acquisition attempt.According to Cidco, which holds a 26% stake in the project, two major factors may have led to shift its attention to NMSEZ. First, RIL feels it can ill-afford to court more controversies over Maha Mumbai SEZ at a time when mid-term polls are being speculated. Second, the promoters need to show some concrete progress on NMSEZ. “Since the state is involved through Cidco, there are no serious land issues. The rehabilitation part is being taken care of by Cidco and there has not been a serious hurdle so far. Also, Cidco genuinely wants the project to happen. All these factors, considered with the sense of urgency driving the promoters now, are working in favour of NMSEZ,” said another Cidco official.
NMSEZ is being developed over 2,140 hectares comprising three different nodes — Dronagiri (1,250 hectares), Kalamboli (350 hectares), Ulwe airport node (460 hectares) and Ulwe waterfront (80 hectares). The central government has also notified Dronagiri and Ulwe waterfront nodes, and Cidco has actually transferred about 1,680 hectares to NMSEZ. “Cidco’s main task is to make land available and facilitate other clearances. As per the SEZ Act of 2005, the development commissioner has to carry out regular inspections at the site to monitor if deadlines are being met or not. It was only after a couple of inspections at the site that the land got notified,” said a Cidco source.The remaining land is also in the last stage of being notified. The Ulwe airport node and Kalamboli have formal approval from the government, a stage prior to notification. With a major portion of the land getting notified and transferred, deadlines have been set for NMSEZ. By 2010, it has to develop 450 hectares. Commercial production should start on at least 150 hectares of this land in another 12 months from May 2008. In all, NMSEZ has to complete infrastructure development on all of 2,140 hectares in six years. As per the agreement, Cidco and the private partner have appointed an independent engineer to monitor the progress of infrastructure development. There has been visible progress here in the past couple of months, Cidco officials said. Levelling of land, the primary activity towards creation of infrastructure, has been completed in Ulwe and about 50% of the job is over in Dronagiri and Kalamboli, too.The dilemma facing the promoters, Cidco officials explained, pertained to the type of users which would set up shop at the SEZ. “As of now, Dronagiri has been named a multi-product SEZ while Kalamboli and Ulwe are supposed to house IT/ITeS , financial services, gems and jewellery. But the type of units has not been finalised yet,” said a source.NMSEZ is learnt to be reviewing a masterplan that Cidco had got done from McCliter, a Chicago-based consulting firm, and is getting a new masterplan prepared by JTC, sources said. “The new plan is being worked out in the context of land contiguity issues raised by the board of approvals on SEZ. The entire stretch of land has to look contiguous, and the new masterplan should envisage construction of some railway over bridges, flyovers and other infrastructure facilities, which do not leave any scope for revenue pilferage, as feared by the BoA,” said an official, requesting anonymity. Last year, when the BoA had delayed granting formal approval to NMSEZ, it had cited lack of land contiguity. Later, Cidco convinced the BoA that the new masterplan being worked out by the strategic private partner for NMSEZ would address the land contiguity issue. The problem was that land was in possession of Cidco from as early as early 2000. Cidco had carried out developmental activities at some places, but not all locations got developed. So, the land did not look contiguous when the NMSEZ proposal came up before the BoA,” said the Cidco official. The project will source its power from a 2,000-MW power plant being developed by Jai Corp. Mr Ambani and Jai Corp are developing a giant port at Rewas which is located in the region.
NMSEZ is being developed over 2,140 hectares comprising Dronagiri, Kalamboli, the Ulwe airport node and Ulwe waterfront Cidco’s main task is to make land available and facilitate clearances By 2010, NMSEZ has to develop 450 hectares Commercial production may start on 150 hectares from May 2008