New Delhi, February 5, 2008: With political uncertainty surrounding mega SEZs, at least one global investor is having second thoughts. Blackstone Group has decided to opt out of its investment commitments in more than one SEZ project in north India.
The cold feet developed by PE firms come as a result of delays by the UPA government on taking a final call on tax breaks and land acquisition for these projects. Blackstone was at an advanced stage of discussions with Reliance Industries for its mega SEZs, including two in Haryana, for which the PE firm was expected to chip in about $500 million. The group is also learnt to be in discussions with DLF and the Raheja group for similar projects in Haryana, worth about $250 million and $150 million, respectively.
With the absence of crucial PE investment the feasibility of several SEZ projects increasingly seem doubtful.
Source: The Indian Express
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