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Mangrove destruction under NMSEZ at Pagote, Uran

NMSEZ to be in Reliance ki Mutthee Mein

Mukesh Ambani’s Co infusing funds

Rating agency CARE says NMSEZ has received Rs.6,038 crore deposits from promoter group

MUMBAI, June 14 (The CONNECT) - Navi Mumbai SEZ, which has so far been projected as a private investment of Mukesh Ambani, will soon be under the control of Reliance Industries Limited.

The promoter group Reliance has been continuously infusing funds Urban Infrastructure Holdings Pvt. Ltd. (UIHPL) into NMSEZ in the form of share application money as well as deposits given by the Dronagiri Infrastructure Pvt. Ltd. (DIPL), the wholly owned subsidiary (WOS) of RIL, CARE Ratings says.

NMSEZ has received deposits to the extent of Rs.6,038 crore till December 31, 2020, the rating company says.

NMSEZ, jointly promoted by DIPL and state-owned City and Industrial Development Corporation of Maharashtra Ltd. (CIDCO) of Maharashtra, has been in the news also for the wrong reasons of alleged violation of environmental laws and burying mangroves and wetlands in eco-sensitive Uran. In fact, the Maharashtra Government’s Environment Department asked the Raigad District Coastal Management Committee to probe into the allegations.

ALSO READ: Greens cry foul as NMSEZ resumes Mangrove destruction despite lockdown

CIDCO holds 26% stake in NMSEZ while the balance 74% equity is held by DIPL. DIPL is a wholly owned subsidiary of Urban Infrastructure Holdings Pvt. Ltd (UIHPL).

CARE says Reliance (Mukesh Ambani) group companies hold 33%, Jai Corp Group led by Anand Jain holds 32% and SKIL Infrastructure has 35% in Urban Infrastructure Holdings Pvt. Ltd. (UIHPL). UIHPL, which in turn holds 99% stake in DIPL, had issued Compulsorily Convertible Debentures (CCD) to Reliance (Mukesh Ambani) Group.

On conversion of CCDs, Reliance Group along with Jai Corp Group will hold substantial equity stake in UIHPL. This will result in Reliance Group and Jai Corp Group indirectly having a controlling stake in NMSEZ, the rating agency points out.

The project is coming up in close proximity to the upcoming second international airport near Mumbai, the Jawaharlal Nehru Port and the Mumbai-Pune Highway. Due to its strategic location, the company is well-positioned with respect to connectivity and trade and is expected to attract various companies from several industries such as IT/ITES, Financial services, textiles, logistics, gems and jewellery etc, says CARE.

ALSO READ: CRZ Blow To Reliance-NMSEZ Plan At Panje Wetland

Navi Mumbai SEZ Pvt. Ltd. (NMSEZ) is jointly promoted by Dronagiri Infrastructure Pvt. Ltd. (DIPL) and City & Industrial Development Corporation of Maharashtra Ltd. (CIDCO) to develop and operate an Integrated Industrial Area (IIA) at Navi Mumbai. ,

For the uninitiated, NMSEZ is located south-east of Mumbai on India’s western coast, about 35 Km south of Vashi, 20 km from Nariman Point, by the sea route, and about 9 Km from Jawaharlal Nehru Port Trust (JNPT).

In FY18, the Maharashtra government has allowed the promoters to convert the SEZ into an Integrated Industrial Area (IIA). Marketing risk related to the project is greatly mitigated since the company has entered into an MoU with WOS of RIL to sub-lease the land of about 4,000 acres – the entire leasable area - along with the associated development rights by making an initial payment of Rs. 2,180 crore subject to fulfilment of certain conditions.

Further, Navi Mumbai Airport has received the clearance from the Environment Ministry and its connectivity i.e. Mumbai Trans Harbour Link which is expected to commence within next few years. With the clearance by Environment Ministry, the demand for the plots within the area is expected to increase. Furthermore, there is no major capital expenditure left to be incurred in the project and moreover, there has been a significant appreciation in the value of land in the last couple of years.

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