Reliance gets only one year to complete green energy project

The state government has turned down a plea by the Mukesh Ambani-led Reliance seeking five more years to complete its green energy project in Devanahalli, granting just twelve months instead.

Reliance is setting up a unit for “research, development and manufacture of green energy power electronics” on a 25-acre plot in the IT Park at Devanahalli. The project is worth Rs 446 crore.

Languishing since its first approval in April 2012, the project originally was to set up an internet data centre at a cost of Rs 300 crore by Infotel Broadband Services Ltd, which later became Reliance Jio Infocomm Ltd. In August 2012, land was allotted on a lease-cum-sale basis.

The government had asked Reliance to complete civil construction works and commence production within 24 months from the date of taking possession of the property, which is January 19, 2013.

However, a dispute involving four acres of the allotted land “stalled” the project. The dispute was between the Karnataka Industrial Areas Development Board (KIADB) and the original land owners “in connection with the alleged wrongful compensation, causing challenges to the possession and development of the disputed land, which stalled development during the first five-year period. Hence, due to reasons beyond our control, we were unable to commence the construction works,” the company informed the government.

Based on the company’s request, the KIADB extended the time for completion of works until November 11, 2018.

It took Reliance six years - between August 2016 and January 2022 - to get various approvals for the internet data centre project, including fire and Airports Authority of India clearances.

In June, the company told the government that it would set up a green energy project instead of an internet data centre, hiking its investment by Rs 146 crore. The government allowed the land allotted to be used by the parent company Reliance Industries Ltd. While the company wanted a five-year extension, the government had other views.

“Extending time happens only after the first five-year period,” Commissioner for Industrial Development Gunjan Krishna told DH.

“And, if no implementation happens for five years, we need to be sure that the land is utilised given the demand there is for land.” She added that time extension decisions depend on progress. “And, we’d like to see progress.”

The government has granted the Board of Control for Cricket in India (BCCI) three months to submit drawings of the new National Cricket Academy (NCA) coming up on 64 acres of land in Devanahalli. The BCCI has roped in L&T for the project.

“The architectural design work for the project is now complete and they are ready to make relevant submission of plans and drawings to the concerned authorities for their approval,” the BCCI said, blaming the Covid-19 pandemic for the delay.