Maha SEZ plan put off

Mukesh Ambani and Anand Jain promoted Mumbai SEZ Ltd has suspended its land acquisition for the MahaMumbai special economic zone in coastal Raigad for an indefinite period.

The company may drop the project altogether, as it was not able to acquire "a minimum of 1,000 hectares of contiguous land" as mandated by the SEZ Act.

The company had acquired over 1,500 hectares, but non-contiguous land, at Rs 10 lakh per acre, by mutual consent. It is now considering a gas-based power project on the land. The company also awaits the passage of Land Acquisition (Amendment) Bill in Parliament, whereby a company can acquire 30 percent of land forcefully to achieve contiguity, if it has already got 70 percent of the total land. Mumbai SEZ officials declined to comment.

Sources familiar with the project said the fate of the MahaMumbai SEZ was virtually sealed, as the Maharashtra government had not recommended the SEZ proposal afresh for issue of in-principle approval by the department of commerce.

Earlier approvals for the SEZ had lapsed.

A senior state government official, who did not want to be quoted, told Business Standard on Tuesday: "As the land is not contiguous as mandated under the SEZ Act, there is no question of development as far as land acquisition is concerned. Approval to the company is subject to its' filing of fresh application, along with fresh state government recommendation. The matter being a sensitive one, the government has yet to take a call whether or not to recommend for land acquisition."

He added that during a referendum taken in October 2008, farmers and villagers had cast their votes against the project and, therefore, the government would think hundred times before recommending Mumbai SEZ's case.

"Chief Minister Ashok Chavan is expected to ask the industries minister, Rajendra Darda, to review the case and submit a report to him," he said.