Reliance Ventures Limited (not to be confused with Reliance Ventures Asset Management, the corporate venture capital investment firm promoted by Reliance ADA Group), a wholly-owned subsidiary of Reliance Industries Limited, has formed a joint venture with Infrastructure Leasing and Financial Services Limited (IL&FS) to develop a model economic township and other infrastructure facilities at Jhajjar in Haryana.
While IL&FS and Reliance Ventures will own 45% stake each in the venture, government of Haryana will own the balance 10%.
The project is a spin-off from Reliance Haryana SEZ Ltd (which inturn is a joint venture between Reliance Ventures and the government of Haryana) which is located to the south west of Delhi.
Reliance had been reportedly looking to convert the proposed SEZ with a domestic tariff area (DTA) after having failed to successfully acquire the land required for the SEZ. It was believed to be negotiating to bring in Japanese companies to set up their manufacturing units in the area.
The company was previously speculated to be in talks with Singapore-based firm InfraCo besides Japan’s Mitsui to rope in as a partner for the project. On the one hand this will mark a rare JV where Reliance has brought in an outside strategic partner for a business venture, it will also kickstart a project which has been languishing for long for the country’s largest corporate entity.
The proposed Jhajjar project may also herald development for the adjoining area leading to spread of Delhi NCR township beyond its immediate vicinity related to Ghaziabad, Gurgaon, Noida and Faridabad.