The Tamil Nadu Government has finally terminated the agreement signed between TIDCO and AMRL Hitech City Limited for leasing out the lands at Nanguneri for creating industry - friendly infrastructure for the proposed Special Economic Zone.
TN Legislative Assembly Speaker M. Appavu had submitted a petition to Chief Minister M. K. Stalin last August pointing out the violations and sought the termination of the agreement signed between TIDCO and AMRL Hitech City Limited for leasing the land for industrial development. “Subsequently, the TIDCO has terminated the land lease agreement,” Mr. Appavu said here on Saturday.
The land, on being retrieved from the promoter, is to be handed over to SIPCOT for creating an industrial estate at Nanguneri since the SIPCOT Industrial Promotion Center at Gangaikondan near here is already full.
Even though foundation stone for the Nanguneri Special Economic Zone was laid in March 2001 with the objective of creating industrial units, residential colonies for workers and entertainment zones on over 2,500 acres to give employment to over 1 lakh skilled and unskilled workforce, the plan never materialised as the US-based INFAC identified by TIDCO for developing this project failed to develop it over 20 long years. After INFAC withdrew from the project, Hyderabad- based AMRL joined hands with TIDCO as the promoter.
The joint venture company, AMRL Hitech City Limited, which was floated for executing the project, has so far attracted investment worth only a few hundred crores of rupees and around 500 persons are working in eight units in the SEZ, which became a multiproduct SEZ.
Moreover, the promoter, without the consent of TIDCO, the co-promoter holding 1% share in this joint venture, and in violation of the agreement signed earlier, had transferred 58% shares to Kolkata-based SREI Infrastructure Finance Limited in a bid to achieve financial closure for investing in industry-friendly infrastructure at AMRL Hitech City Limited.
“The AMRL Hitech City Limited has drawn loan to the tune of ₹855 crore from SREI Infrastructure Finance Limited by mortgaging the lands given to it for developing the SEZ, which is also against the lease agreement signed by TIDCO,” said Mr. Appavu.
He was here to hand over offer letters to 20 girls who have been selected for various positions in the upcoming in TATA Power Solar Limited at SIPCOT Industrial Promotion Centre at Gangaikondan near here.
The Speaker also informed that the Chief Minister, following the termination of the lease agreement in December last, had initiated steps for retrieving at the earliest the land mortgaged to SREI Infrastructure Finance Limited by the promoter and planned to involve SIPCOT for creating industrial estate at this sprawling well-connected site near Nanguneri.
