REL may join hands with Indiabulls for Raigad SEZ

MUMBAI: Anil Dhirubhai Ambani (ADA) Group company Reliance Energy (REL) may be close to inking an agreement with Indiabulls Real Estate (IBREL) to jointly develop a 6,000-acre multi-product special economic zone (SEZ) in Maharashtra���s Raigad district.

The project may be developed as a 50:50 joint venture, sources familiar with the development told ET.

REL officials declined to comment, while Indiabulls director Gagan Banga said, ���We would not react to market speculation.���On BSE, shares of IBREL and REL were down 8% to Rs 468.60 and Rs 1,191, respectively in a weak Mumbai market.

This move is part of REL���s aspirations to enter the real estate and infrastructure development business. The logic is that the 22-km Mumbai Trans Harbour Link (MTHL) project from Sewree to Nhava-Sheva, also bagged by REL, would service this SEZ.

REL has claimed that it will construct MTHL within five years and recover the cost in the next five years. Besides, the ADA Group���s expertise in roads, communications, power, financial services will be leveraged in the SEZ project.

The proposed SEZ will consist of an industrial processing area of 2,100 acres, a commercial area of 900 acres, a residential area of 1,500 acres, and open space of 1,500 acres. It will comprise of a central core with various industry hubs.

Facilities in the central core will include convention centres, business incubation facilities with ready-to-move-in office space and laboratories, R&D facilities and contract research, data centres and quality analysis and data retrieval facilities. Industry hubs will include institutions of learning and innovation, design and transportation facilities.

The proposed residential space will comprise of residential developments and landscaped parks with central recreational facilities such as club houses, a tennis academy and green zones to enhance the quality of life for residents. The commercial space will include provisions for hotels, shopping facilities, office space, entertainment facilities and healthcare.

IBREL with projects covering a total land area in excess of 10,000 acres is one of the largest listed real estate companies in India and a leading national player across multiple realty and infrastructure sectors.

Formerly known as BSES, REL is in the process of changing its name to Reliance Infrastructure. REL���s board has already approved the name change and will seek shareholder���s approval for this.