Published On : Sat, Feb 4th, 2017

Mihan Land Allotment : Reliance to pay outstanding Rs 38 cr by March

Reliance Aerospace Park

File Photo

Nagpur: Finally Reliance Aerostructure has opened up regarding its pending dues in lieu of land allotment in Mihan-SEZ in Nagpur. The company owned by Anil Dhirubhai Ambani Group (ADAG) has assured Maharashtra Airport Development Company (MADC), to pay Rs 38 crore pending towards allotment of land in the Mihan-SEZ, by March. The money is due since last year.

The company had announced its plans for the Mihan-SEZ in November 2015, but had remained a non-starter since then. The total cost of the land comes to Rs63 crore. So far MADC has got only Rs25 crore, with Rs38 crore pending. Reliance had missed the deadline to pay an instalment of Rs17 crore in mid 2016.
Sources say the company officials in a recent meeting had assured to clear the dues by March. Only after Reliance Aerostructure pays the entire amount, MADC will sign lease agreement for the land. At present the company only has an allotment letter in hand.

In November 2015, Anil Ambani had made announcements to come up with a complex making aircraft spares and related items with an investment of Rs6,500 crore. It was allotted 289 acres of land in the SEZ, but the company soon cut the requirement to 104 acres, for which the money is due.

However, the situation changed after India inked a deal to buy 36 Rafale aircraft with France’s Dassault Aviation. Reliance has entered into a joint venture with the French company to execute the offset agreement arising out of the deal. A major chunk of the work under the arrangement is expected to be carried out at Mihan said sources.

Last week Reliance secured an approval from competition commission of India (CCI), for the joint venture. CCI is a body responsible to curb monopolistic situations in the market,Reliance had also insisted that MADC should first start building a taxiway connecting the existing runway with its unit the Mihan.

However, MADC on the other hand wants Reliance to reach at least half way on the project.

Reliance will now have to pay the amount even before MADC goes ahead with the taxiway, said sources.

However the MADC is still likely to start constructing a taxiway, ending just before Reliance’s site. This would be for Indamer Aviation which has plans to start a maintenance repair and overhaul (MRO), in an area of 29 acres. It has made the payments for the first phase with the second instalment expected in this month. If Indamer clears dues, MADC may start building a taxiway in its campus, said sources.