Monday, June 29, 2015

Navi Mumbai SEZ developers may face penalties for delay : The Times of India

Navi Mumbai

While the Navi Mumbai SEZ is yet to take off, the state, through Cidco, may seek damages or impose penalties on the developers of the SEZ and also introduce a termination clause for future.

The developers failed to complete the project, missed the 2010 deadline and were given an extension till 2012. The developers yet again failed to meet the deadline and the state refused to give further extension and the project was in limbo.

Recently , however, the developers of the SEZ, Dronagiri Infrastructure Pvt. Ltd (DIPL) -owned by SKIL Infrastructure, Jai Corp Ltd and Mukesh Ambani -expressed interest in reviving the project and sought a fresh extension to finish it.Meanwhile, chief minister Devendra Fadnavis also declared his intentions of reviving the SEZ project, which was slated to bring in investment to the tune of Rs 25,000 to 30,000 crore as per a 2004 estimate.

But the state and Cidco now want to seek damages as the developer has failed to implement the project on time and have sought legal opinion. Besides, it also wants to ensure that the project is implemented in the e quickest time possible if an extension is granted. Cidco MD Sanjay Bhatia confirmed they were seeking le, gal opinion on damages and also incorporating a termination clause if the developers failed to finish the project within time.. “A decision is being taken at the highest level and new mile stones are being considered for e the project. Even if an extension is granted, we are looking at the e project being completed in r quick time,“ said Bhatia.

The damages may run up to Rs 400 crore, according to an estimate prepared by an internal Cidco t audit. However, it may be calcue lated after being legally vetted.t When this correspondent e contacted SKIL Infrastructure e Limited director Shekhar Gandhi, he refused to comment, while its marketing manager S Chaudhury said he was not authorized to comment.

Cidco had committed 2,140 hectares of the land for the project and managed to hand over 1,842 hectares to the developers from 2006 to 2008 for implementing the project. The project was to be completed in five phases and the first deadline was in 2010. But till date, there has been very little development.

“The promoters had probably lost interest due to market conditions and had not even developed 10 percent of the land allotted to it,“ said a Cidco official.“The promoters too have their grouses and claim Cidco has not met its own commitments,“ another official pointed out.



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