Mukesh Ambani-promoted Mumbai SEZ seeks third extension

NEW DELHI: Mumbai SEZ Ltd, promoted by Reliance Industries Chairman Mukesh Ambani and his close aide Anand Jain, has sought extension, for the third time, for the validity of its in-principle approval granted by the government in 2006.

The Board of Approval (BoA) in the Commerce Ministry will consider the request of the developers at its meeting on October 5, along with other similar applications from Mahindra World City, Tamil Nadu Industrial Development Corporation and Pune Hi-tech Infra Engineering Pvt Ltd.

In its application to the BoA for extension of validity up to August 2010, Mumbai SEZ has stated that it has already "spent/committed" Rs 1,200 crore, out of which Rs 110 crore has been paid to the state government for land acquisition.

It said the steps have been taken to acquire land with the consent of land owners and developers have been able to execute sale with payment of full consideration to the extent of Rs 48 crore.

Mumbai SEZ spokesperson declined to comment. The company was given first in-principle approval on August 8, 2006. Subsequently, two extensions were granted and the validity of the last extension was approved on August 7.

Under the SEZ rules, the in-principle approval is valid for one year and extension may be granted for another two years. Further extension can be given only if the BoA amends these rules.

The in-principle approval can be converted into formal approval only after the developer completes the land acquisition.