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More firms to file petitions after Cipla`s plea against Goa SEZ policy BS Reporter / Mumbai March 30, 2008 The move by drug major Cipla's group company, Meditab Specialities, to seek legal action to get clarity on the future of its special economic zone (SEZ) project in Goa is likely to make others notified zone developers follow suit. "We want to know who will compensate us for the losses if the SEZ is going to be cancelled? We hope the Court will address this issue," said Amar Lulla, joint managing director, Cipla Ltd. Meditab filed a petition at the Panaji Bench of the Bombay High Court last week challenging the Goa government's recommendation to scrap its SEZ, made after protests by locals. The developer of another notified SEZ, Peninsula Pharma Research Centre, promoted by real estate major Peninsula Land Ltd, is also planning to move the Bombay High Court Bench at Goa against the local government's recommendation. "The government has allotted the land for us and the special economic zone has been notified. We are hoping that the project will go on," said Rajesh Jaggi, managing director, Peninsula Land. Peninsula Pharma Research Centre is coming up at Sancoale in Goa in 20.36 hectare area to house biotech units. It is yet to start work at the site, sources added. K Raheja Corp is the third notified SEZ developer in Goa. Goa government officials were not available for comment. Lulla said the company decided to invest in Goa after the special economic zone was notified and various assurances were given by the local government. The state government's decision to backtrack and scrap the special economic zonewould cause huge loss for the company and impact its expansion plans, he added. Cipla has so far invested around Rs 200 crore in the 600 acre SEZ being promoted by Meditab Specialities Ltd, developer of the special economic zone. "We have invested in land and machinery and orders were placed for plant equipment. We will soon submit to the court all details of our investments so far and possible losses," said Lulla. Cipla planned to invest Rs 400 crore at thespecial economic zone at Keri in South Goa to make aerosols, capsules and tablets. In January this year, the Goa government had asked the Union Ministry of Commerce to de-notify the three approved SEZs in the state and not to process the eight special economic zone proposals awaiting appoval. It also demanded not to notify another four SEZs which had been approved but not notified.
