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STATE GIVES ITS FINAL APPROVAL ON VIDEOCON’S LCD PROJECT

videocon-deal-3Videocon Industries can heave a sigh of relief as the Maharashtra Cabinet endorsed its earlier decision to allot 250 acres of land in Navi Mumbai to the consumer goods major despite a written protest filed by revenue minister Narayan Rane. Its green signal for Videocon Industries after the Maharashtra Cabinet’s decision. Revenue Minister Narayan Rane had publicly opposed the proposal to hand over the land to Videocon at the last Cabinet meet. He then went on to submit his resignation to the party high command over the issue. Since Mr Rane raised a furore over the decision, uncertainty prevailed over the fate of Videocon project. He has also accused chief minister Vilasrao Deshmukh of arbitrarily pushing through the decision using his position. But the Cabinet recently firmed up its decision without an iota of opposition from any of the ministers in attendance which saw the absence of Narayan Rane. It maybe recalled that Videocon has proposed to set up an LCD manufacturing plant at the site with an investment of Rs 8,000 crore, of which Rs 2,000 crore will come from either the Union government as capital subsidy or the company itself in case the Centre refuses. The proposal has been approved by the Centre under its incentive package scheme for development of semi-conductor and nano technologies. Rane had opposed the decision as the land has been allotted to Videocon for a paltry Rs 300 crore of which the company will make an upfront payment of only Rs 40 crore. If auctioned, the land could fetch between Rs 3,000 crore and Rs 4,000 crore at the prevailing market rates. It must have been one of the controversial decision taken by the state government to the extent that the state Revenue Minster Narayan Rane had even submitted his resignation. But at the end of the day CRZ norms lost, the opposition lost, and environmentalist lost against the money and power of the capitalist of the state.

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