Lucknow: After getting the Dadri gas-based power project, the Anil Ambani promoted Reliance group has bagged an ambitious Special Economic Zone (SEZ) in Uttar Pradesh.
Though Reliance is yet to start work on the Dadri power project even after one year of signing the agreement with the Mulayam Singh Yadav government, the state government has alloted 2,500 acres of prime land worth Rs 6,000 crore in Noida for setting up the SEZ.
The Dadri project had gone on a wrong track after the Centre refused to approve the price of gas to be supplied to the power project. Former Prime minister V P Singh-led Jan Morcha had led an agitation in favour of the farmers whose lands were acquired for the project.
The UP government has alloted 2100 acre of land for the Dadri project. But the farmers are agitating at the alleged low compensation rate for their farming land, acquired by the government at Rs 150 per square meter.
Recently, the UP government has approved allotment of 2,500 acres of land worth Rs 6,000 crore, for the ADAG Reliance group to set up Special Economic zone at NOIDA.
This would be the first such approval given by the UP government after the new SEZ policy was announced in July last. This proposal has also been approved by the state cabinet.
A consortium of three companies of the ADAG group: Reliance One World, Reliance Energy Limited and Reliance Infocom will set up the multi-product SEZ at NOIDA. The ADAG group had applied for the land soon after the SEZ policy was announced by the state government in July last.
The board of the NOIDA (New Okhla Industrial Development Authority) had already approved the proposal. The 2,500 acres of land worth Rs 6,000 crore for the SEZ would be given on lease to the consortium of the three companies of the ADAG group.
Earlier, the NOIDA board on September 1, had put the proposal of ADAG group on hold as it was not found in accordance with the norms and conditions laid down by the SEZ policy.
Official sources here had said that the proposal was approved once Ambani fulfilled the conditions laid in the SEZ policy.
The main objection of the NOIDA board was over the formation of consortium by three companies of the ADAG group.
Sources outrightly denied that the state government has given any favors to the ADAG group saying that the government was keen to encourage SEZ and anybody could apply.
Sources added so far the government has received 20 proposals for the SEZ since the announcement of new policy.
The state government has already step up its effort to set up at least 14 SEZs after announcement of the policy whereas the central government had already approved four SEZs, two in the private sector and two in the public for UP.
Under the new SEZ policy, 2006 announced by the state government, any company whose net worth is over Rs 300 crore can apply for the SEZ in compliance with the approval of the state and the Centre.
The policy said no stamp duty or registration fee would be imposed on the first transaction of lease between the developer and the industrial unit coming up there. The SEZs would be exempted from the purview of any taxes, levies, cess and the tax imposed by the local bodies. No trade tax, turnover tax, development tax, mandi tax, purchase tax, local bodies tax or entry tax would be imposed on the exports made from the SEZs.
However, any sale made in the domestic tariff area would be liable for imposition of normal taxes.
As the SEZs would be declared industrial cities under the provisions of the Article 243 'Q' of the Constitution, taxes imposed by the local bodies would not be applicable there.
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