ADAG denies NICE involvement

ADAG denies NICE involvement
Vijay Times

There is a strange new twist to the BangaloreMysore Infrastructure Corridors (BMIC) already twisted tale.

BMIC promoters Nandi Infrastructure Corridor Enterprises (NICE) and Anil Dhirubhai Ambani Enterprises (ADAE) have contradictory versions on the latter picking up a 15 per cent stake in the Rs 1,000 crore first phase of the Rs 2,250 crore BMIC project.

While NICE says that Mumbaibased ADAE picked up the stake last year, the latter has categorically denied it, adding that there is no involvement in the project.

ADAEs participation was seen as a significant development in the chequered history of BMIC project.

The industry was abuzz with ADAE and NICE teaming up to see that the much-delayed project took off. But ADAEs denial now has come as a shocker, throwing up the question whether the ongoing controversy over excess land has anything to do with its suspected turnaround.

Reports had confirmed that ADAE through its investment arm Reliance Energy Investments had signed a deal on July 20, 2005, picking up 15 per cent equity in the first phase of the project. The deal was reportedly signed a day after the Supreme Court gave an interim order directing NICE to continue with the road building without alienating any land. Apart from the stake, ADAE was expected to bring telecom and power generation and distribution expertise to the project after the townships were developed. The plans entailed laying fibre optic network along the road and providing connections at each of the five planned townships.

Besides, they said ADAE was likely to chip in with the 400 MW power generation and distribution which was part of the project.

But a spokesman from ADAE, which comprises Reliance Energy and Reliance Infocomm, categorically told Vijay Times in Mumbai "There is no question of picking up 15 per cent equity stake in the first phase of the project." Reliance Energy officials further said in New Delhi, "We have not participated and are not involved with the Bangalore project (BMIC)." Ironically, the NICE spokesman said there were two different issues - the 15 per cent stake, on one hand, and involvement through developing, telecom and energy services, on the other. Discussions were on for the latter, but the deal signed pertained to the former, he said.

He said the stake was a "strategic investment" in the project and vouched that discussions were on "at an extremely preliminary stage" - a point ADAE has denied.