In a first, Maha asks Videocon to shift SEZ
Offers 2,000 acres in Pune’s Saswad taluk.
The Maharashtra government has offered 2,000 acres to Videocon Group for the development of a multi-purpose special economic zone (SEZ) in Pune’s Saswad taluk. This comes close on the heels of Wednesday’s decision to withdraw permission to the Rs 20,000-crore Group for setting up an SEZ in adjacent Wagholi taluk in response to the pressure from local farmers.
The Group has so far spent Rs 10 crore on the project. This is the first SEZ out of the 146 SEZs proposed in Maharashtra that has been officially wound up.
Similar protests have threatened other SEZ projects planned in the state. This includes MahaMumbai SEZ by Reliance Industries, IndiaBulls SEZ and Ispat Group SEZ in Raigad district, and Mahindra & Mahindra SEZ in Pune district. While the MahaMumbai SEZ is proposed on 10,000 hectares of land, other SEZs are being planned on land ranging between 1,000 and 3000 hectares.
The state has 146 SEZ proposals spread across 45,531.31 hectares. Of these, the Board of Approvals (BoA) has notified 58 SEZs covering 8,142.31 hectares. So far, 52 SEZs covering 4,870 hectares have been given final approval by BoA, while 36 SEZs covering 32,519 hectares have been given in-principle approval. These 146 SEZs envisage a total investment of Rs 1,88,501 crore with employment potential for 65.70 lakh people.
In Goa, the state government has asked the Centre for denotification of three zones due to protests.
In addition, developers such as DLF have voluntarily sought denotification citing a fall in demand after the global economic crisis.
In Maharashtra, though BoA, an inter-ministerial body at the Centre, had approved the Wagholi SEZ in-principle in 2006, it was not notified. So, the state government exercised its powers to issue cancellation of SEZ through a directive by the Pune district collector.
Chief Minister Ashok Chavan during his meeting held two days ago with the Videocon Group chairman V N Dhoot clarified that the government had already taken a decision that land acquisition under duress would not be done for SEZ developments.
Sources privy to the discussions said that Chavan instead suggested the alternative site to the Videocon Group in Saswad taluk.
“Ever since BoA’s approval for the Wagholi SEZ, farmers are against the project. The state-run Maharashtra Industrial Development Corporation (MIDC) and Videocon Group had entered into a memorandum of understanding for the development of SEZ. Subsequently, MIDC under the MIDC Act issued the notification under Chapter 6 for the acquisition of 3,000 acres. However, due to strong opposition from the farmers, the state government stayed the project in November 2007,” a senior state government official, who did not want to be quoted, told Business Standard.
Incidentally, the Nationalist Congress Party and its president and Union Minister for Agriculture Sharad Pawar upheld the farmers’ cause.
Dhoot said the Group would go by the state government’s decision. “We will look into the state government’s proposal to consider another site. I am impressed by the chief minister’s stand that the industry should not go out of Maharashtra and sons of the soil should continue to invest in the state.”
Dhoot admitted that the Group could not make any substantial move in the acquisition of land for the Wagholi SEZ due to largescale opposition from farmers.
He said the Group had already held talks with several European companies for their investments in the Wagholi SEZ. Besides, they had set up some of their units.
Further, the Videocon Chairman admitted that his Group was facing similar opposition in the proposed SEZ near Walunj, Aurangabad district.
The project has received in-principle clearance, but land acquisition is taking place at a slow pace
The Group has so far spent Rs 10 crore on the project. This is the first SEZ out of the 146 SEZs proposed in Maharashtra that has been officially wound up.
Similar protests have threatened other SEZ projects planned in the state. This includes MahaMumbai SEZ by Reliance Industries, IndiaBulls SEZ and Ispat Group SEZ in Raigad district, and Mahindra & Mahindra SEZ in Pune district. While the MahaMumbai SEZ is proposed on 10,000 hectares of land, other SEZs are being planned on land ranging between 1,000 and 3000 hectares.
The state has 146 SEZ proposals spread across 45,531.31 hectares. Of these, the Board of Approvals (BoA) has notified 58 SEZs covering 8,142.31 hectares. So far, 52 SEZs covering 4,870 hectares have been given final approval by BoA, while 36 SEZs covering 32,519 hectares have been given in-principle approval. These 146 SEZs envisage a total investment of Rs 1,88,501 crore with employment potential for 65.70 lakh people.
In Goa, the state government has asked the Centre for denotification of three zones due to protests.
In addition, developers such as DLF have voluntarily sought denotification citing a fall in demand after the global economic crisis.
In Maharashtra, though BoA, an inter-ministerial body at the Centre, had approved the Wagholi SEZ in-principle in 2006, it was not notified. So, the state government exercised its powers to issue cancellation of SEZ through a directive by the Pune district collector.
Chief Minister Ashok Chavan during his meeting held two days ago with the Videocon Group chairman V N Dhoot clarified that the government had already taken a decision that land acquisition under duress would not be done for SEZ developments.
Sources privy to the discussions said that Chavan instead suggested the alternative site to the Videocon Group in Saswad taluk.
“Ever since BoA’s approval for the Wagholi SEZ, farmers are against the project. The state-run Maharashtra Industrial Development Corporation (MIDC) and Videocon Group had entered into a memorandum of understanding for the development of SEZ. Subsequently, MIDC under the MIDC Act issued the notification under Chapter 6 for the acquisition of 3,000 acres. However, due to strong opposition from the farmers, the state government stayed the project in November 2007,” a senior state government official, who did not want to be quoted, told Business Standard.
Incidentally, the Nationalist Congress Party and its president and Union Minister for Agriculture Sharad Pawar upheld the farmers’ cause.
Dhoot said the Group would go by the state government’s decision. “We will look into the state government’s proposal to consider another site. I am impressed by the chief minister’s stand that the industry should not go out of Maharashtra and sons of the soil should continue to invest in the state.”
Dhoot admitted that the Group could not make any substantial move in the acquisition of land for the Wagholi SEZ due to largescale opposition from farmers.
He said the Group had already held talks with several European companies for their investments in the Wagholi SEZ. Besides, they had set up some of their units.
Further, the Videocon Chairman admitted that his Group was facing similar opposition in the proposed SEZ near Walunj, Aurangabad district.
The project has received in-principle clearance, but land acquisition is taking place at a slow pace
MTNL puts overseas acquisition on hold
State-run MTNL has put its overseas acquisitions plans on the
backburner for the time being as it decides to focus on improving
its market
share in Delhi and Mumbai -the only places where it operates.
"Right now we don't have any plans ... I am concentrating on my in-house business more... We are doing very well in Nepal and Mauritius, which are going to fetch good revenues. It is not that we have all together stopped. For some time we are not very active," MTNL CMD RSP Sinha told.
However, the NYSE listed company has expressed its desire to partner its big brother PSU BSNL in their overseas acquisition, especially in the emerging markets. The PSU has a mobile subscriber base of 44 lakh and is eyeing 50 lakh before the fiscal end. MTNL shares were trading at Rs 73.85, down 0.94 percent.
"If BSNL is looking towards them (emerging markets) for acquisitions, we would also like to join them as a partner when they finally decide (on any target company). We tell them take us along with you as a partner," he said.
BSNL has placed a bid for buying up to 75 percent stake in Zambia's lone fixed line operator Zamtel. In the past MTNL had lost the bid to Kenya's second national licence. After emerging as the preferred buyer for Sri Lanka's Suntel, the PSU put the proposal on the backburner as valuation issues cropped up over some legal liabilities.
State-run MTNL has put its overseas acquisitions plans on the
backburner for the time being as it decides to focus on improving
its market
share in Delhi and Mumbai -the only places where it operates.
"Right now we don't have any plans ... I am concentrating on my in-house business more... We are doing very well in Nepal and Mauritius, which are going to fetch good revenues. It is not that we have all together stopped. For some time we are not very active," MTNL CMD RSP Sinha told.
However, the NYSE listed company has expressed its desire to partner its big brother PSU BSNL in their overseas acquisition, especially in the emerging markets. The PSU has a mobile subscriber base of 44 lakh and is eyeing 50 lakh before the fiscal end. MTNL shares were trading at Rs 73.85, down 0.94 percent.
"If BSNL is looking towards them (emerging markets) for acquisitions, we would also like to join them as a partner when they finally decide (on any target company). We tell them take us along with you as a partner," he said.
BSNL has placed a bid for buying up to 75 percent stake in Zambia's lone fixed line operator Zamtel. In the past MTNL had lost the bid to Kenya's second national licence. After emerging as the preferred buyer for Sri Lanka's Suntel, the PSU put the proposal on the backburner as valuation issues cropped up over some legal liabilities.
