For Rs 2,200 crore, Reliance Industries Ltd. (RIL) made a historic acquisition of more than 5,286 acres of valuable industrial land that is ideally located close to the Mumbai Trans Harbour Link (MTHL) project, Jawaharlal Nehru Port Trust (JNPT), and Navi Mumbai International Airport. RIL’s industrial footprint has significantly expanded with this transaction, which is regarded as one of the biggest industrial land deals in Maharashtra.
Anand Jain-backed Jai Corp Ltd owns a 32% stake in Urban Infrastructure Holdings Pvt Ltd (UIHPL), which sold the land parcel that was once a part of a Special Economic Zone (SEZ) project. Dronagiri Infrastructure Pvt Ltd (DIPL), a subsidiary of UIHPL, sold RIL its 74% share in Navi Mumbai IIA Pvt Ltd (NMIIA) for INR 1,628 crore, bringing the total value of the business to INR 2,200 crore. Once major infrastructure projects like the MTHL and Navi Mumbai Airport are completely operational, the Navi Mumbai Special Economic Zone (SEZ) is expected to have enormous economic potential; some estimates suggest its value might surpass INR 1 lakh crore. Notwithstanding these forecasts, RIL’s purchase price represents the land and project worth as of right now rather than the anticipated future returns from these activities.
It’s interesting to note that the arrangement of the contract has prompted enquiries concerning RIL’s relationship with the other parties involved. With a sizeable stake in DIPL, UIHPL has revealed that Reliance’s investment is not a connected party transaction. But since Reliance Group, under Mukesh Ambani, owns 33% of UIHPL, the deal subtly strengthens RIL’s position in the emerging industrial centre by consolidating its control over the project. The expansive 2,140-hectare (about 5,286-acre) Dronagiri project has witnessed substantial infrastructural expansion and investment.
The site is expected to develop into a significant industrial and commercial zone with financial support from both Reliance and Jai Corp. The project has reportedly already obtained a sizable amount of investment, including more than INR 3,100 crore in deposits and equity, guaranteeing that future land demand in the area will increase.
There are still concerns about the land’s value and the anticipated profits from this purchase, despite the encouraging outlook. Even though the project has been approved by the environment, RIL’s emphasis on the area’s long-term growth is consistent with its larger plan to profit from the region’s thriving industrial and logistics sectors. As RIL proceeds with this noteworthy acquisition, the agreement underscores the increasing significance of strategic land investments in Maharashtra, propelled by massive infrastructure projects that are poised to revolutionise the economic landscape of the region in the years to come.
Source: Urban Acres
