New Delhi, Aug. 2: Mukesh Ambani-promoted Reliance Haryana SEZ has sought a third extension to complete the acquisition of land.

The company has been able to acquire around 10 per cent of the proposed 5,000 hectares for a multi-product enclave.

The 19-member inter-ministerial board of approval (BoA), headed by commerce secretary Rahul Khullar, is likely to consider the proposal on August 11.

Company sources said they were going slow because of recession and resistance from farmers who were demanding a higher compensation.

“The request of Reliance SEZ for an extension will be considered at the BoA meeting,” a senior commerce ministry official said.

Proposed SEZs that get an in-principle nod from the government have to complete land acquisition within one year of approval. A formally approved SEZ with land under possession has to begin operations within three years.

The Reliance SEZ was to initially cover 10,000 hectares at an investment of over Rs 25,000 crore. This was scaled down to 5,000 hectares after the government capped the area under SEZs.

So far, Reliance Haryana SEZ Ltd has been able to acquire 486 hectares for the Gurgaon project. The Haryana State Industrial and Infrastructure Development Corporation — which holds a 10 per cent sweat equity in the project — has transferred 133 hectares. The land available, however, is not contiguous — a key requirement for the notification of SEZs. Reliance has sought the state government’s help.

The Reliance SEZ had set a target of attracting investments of Rs 1,00,000 crore.

It plans to set up a captive 2,000MW power plant and an airport for cargo movement.

Analysts say the gestation period in such capital-intensive projects tends to be long, which delays revenue generation.

SEZs are industrial enclaves promoted by the government to boost manufacturing through fiscal and other incentives to companies that invest in them.

Companies keen on SEZs have to obtain initial approval from the government, acquire land and, then, get the zone “notified” so that units within the enclave become eligible for incentives.

The BoA will also consider five proposals, including those of Brooke Bond Real Estates and Deccan Infrastructure. Besides, it will take a decision on the requests of Lanco Solar and Cochin Airport International, officials said.

Brooke Bond Real Estates plans to set up an infotech SEZ in over 11 hectares in Karnataka, while Deccan Infrastructure has moved the BoA for permission to develop two zones in Andhra Pradesh.

So far, 576 formal approvals have been given for setting up SEZs, of which 319 have been notified.