Reliance returns land acquired for SEZ in Haryana
Reliance Industries today announced that it has returned nearly 1,384 acres of land in Gurgaon that was acquired for its SEZ. The withdrawal of the concessions offered to special economic zones has made such projects unviable. The MAT (Minimum alternate tax) and DDT (Dividend Distribution Tax) were imposed by the government in 2011 and the SEZs started losing their sheen after that move.
The company said in a statement that Reliance Haryana SEZ Limited (RHSL) on Friday returned 1,383.68 acres of land in Gurgaon acquired from HSIIDC for setting up SEZs. All the companies were expecting that in the Union budget after the new government was formed; there will be provisions to bring the economic activities back to the SEZs. However since the NaMo led government also continued with the same tax structure, Reliance took this move due to the revision of strategic priorities.
RHSL is a joint venture (JV) between Reliance Ventures Ltd (RVL), RIL’s wholly owned subsidiary, and Government of Haryana through HSIIDC. The JV was established for development of SEZs/Model Economic Township (MET) project and other infrastructure facilities in Haryana.
This is not good for the growth of the nation. HSIIDC has also exited the JV and the project. The Model Economic Township project will continue to be developed in the Industrial Model Township framework on the directly purchased land.
The statement also mentioned that the development work has been started on over 290 acres as an Industrial Colony. Companies such as Panasonic and Denso have established their manufacturing units in the MET Project.
Source- Financial Chronicle
DDT, Dividend Distribution Tax, industrial model township, land in Gurgaon, MAT, Minimum Alternate Tax, Reliance Haryana SEZ Limited, Reliance Ventures Ltd, RHSL, RVL
