Reliance Industries Ltd.

The Haryana government was in talks with RelianceIndustries (RIL) to take back 1,383 acres in Gurgaon as the company has failedto develop the special economic zone over the same.  The discussions were on to workout terms and conditions with regard to taking back the land. Thecompany had entered into an agreement with the state government in 2006 to setup SEZ in Jhajjar and Gurgaon by setting up Special Purpose Vehicle RelianceHaryana SEZ. Reliance Haryana SEZ is a joint venture between Reliance Ventures,a RIL subsidiary, and Haryana State Industrial and Infrastructure DevelopmentCorporation (HSIIDC).

In the joint venture, RIL has a 90% stake,while HSIIDC has 10% sweat equity. 1,383.68 acres owned by HSIIDC wastransferred to Reliance Haryana SEZ in 2006. The company, last year, had soughtextension for its in-principle approval for Gurgaon SEZ from the CommerceMinistry till March 2015, but the approval was granted till March 2012. The[in-principle approval] extension granted to Reliance is going to expire inMarch. The ambitious SEZ project was to originally come up on 10,000 hectares(about 24,710 acres) at an investment of over Rs 25,000 crore, but the size wasscaled down to 5,000 hectares (about 12,355 acres) after the government put acap on land acquisition for such tax free zones. RIL and the Haryana governmenthad entered into a deal in 2006 for setting up the multi-product SEZ, at thattime billed as India's largest and expected to attract about Rs 1,00,000 croreof third-party investments.