Date:09/12/2007 URL: http://www.thehindubusinessline.com/2007/12/09/stories/2007120951300200.htm

Cipla taking relook at Goa SEZ project

Protest by local people halts work at the site

Our Bureau

Mumbai, Dec. 8 Cipla is set to review its Rs 400-crore Special Economic Zone in Goa, after protests from local people halted work at the site.

It was an approved SEZ and the Government will be going back on its commitment if there is a problem, Cipla’s Chief Executive Officer, Mr Amar Lulla, told Business Line.

The company is reviewing the project and will not just move the project out of Goa if the authorities are not able to sort out the problem, but will also make claims from the Government for the money already spent, he said.

The Goa project was announced by Cipla’s Chairman and Managing Director, Dr Yusuf Hamied, at the company’s last annual general meeting. He had told shareholders that Cipla would invest Rs 400 crore in building a facility that would make aerosols, capsules and tablets. Work had commenced at the site, said Mr Lulla.

The pharma SEZ is being built at Keri by Cipla’s sister concern Meditab Specialities Pvt Ltd.

Agency reports

News-agency reports quote the Goa Chief Minister, Mr Digamber Kamat, as saying: “Both the companies, whose SEZs are notified, have informed us that they have stopped the work and will not start till the Cabinet Committee on Infrastructure reviews it.”

The committee had held an emergency meeting at the CM’s official residence after public protests at the proposed SEZs, the agency said.

“The work on any of SEZs will not start till the committee reviews all the projects,” Mr Kamat said, adding that the chief secretary would formulate a white paper on SEZs in Goa that would be tabled on Wednesday, the agency report added.