The Hindu Business Line : M&M ties up with Rajasthan for industrial park

MAHINDRA & Mahindra has signed a deal with the Rajasthan Government to set up an industrial park near Jaipur, with estimated investments to the tune of Rs 10,000 crore.

The first stage of the venture would be focussed on creating an IT Park. The second phase would be to put in place facilities for multi-product line industries, the Rajasthan Minister for Industries, Mr Narpat Singh Rajvi, told newspersons here today.

The State Government has already identified about 3,000 acres of land near Jaipur and is working out the schedules and nitty-gritty with the company, he said.

It has been decided to form a Special Purpose Vehicle (SPV). The State Government would hold 49 per cent equity. Most likely it would be in the form of land, Mr Rajvi said.

Giving a detailed presentation on the investment climate in the State, Mr Rajvi said about Rs 25,000 crore of investments are in the pipeline. Already Rs 19,000 crore have been spent in setting up industries in various sectors during the past couple of years.

The oil and gas finds in the State will change the industrial structure in the western Rajasthan. The expected annual royalty from these sectors was to the tune of Rs 2,500 crore. The State is also keen on establishing its own gas grid. It has initiated a feasibility study and is looking at an SPV for the purpose.

The proposed gas pipeline between Gurgaon-Bhiwani-Neemrana, which began in November 2005, would be completed in 15 months. GAIL, Shell and consumer units are involved in the project, the Minister said.

Lignite based power projects, cement units, gems and jewellery and textiles are other key areas that are attracting investments and growth.

About 3,000 MW of power is expected to added by 2008. As for tourism and hospitality about 20,000 rooms are to be added, to the existing 40,000, which are seeing 100 per cent occupancy, he said.

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