India's Reliance Industries Ltd. plans to invest Rs 250 bln (US$5.5 bln) in a special economic zone in Haryana, that includes a 2,000MW power plant, an international cargo airport, an inland container depot and a dry port. An initial deal has been signed with the government of Haryana state, and the amount will be invested over a period of 5-10 years. The project is to be run by a new company, Reliance Haryana SEZ Ltd., along with group company Reliance Ventures Ltd. Reliance Ventures would hold 90% equity in Reliance Haryana SEZ, the state government would hold the rest and the new firm would be listed on the stock exchange in a few years.
The balance Rs150 bln required for the SEZ is expected to come from other domestic and foreign investors, in a project where a return of about 18-20% is expected. This investment is in line with the country's policy, approved last year, paving the way to set up special economic zones to boost exports, attract foreign direct investment and help set up world class infrastructure within these areas. The Indian government, which expects US$22 billion to flow into such zones over the next three years, has promised exemptions on direct and indirect taxes for firms setting up SEZs.
20-Jun-06 
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