CHENNAI: Two proposed multi-sector Special Economic Zones (SEZs) in Tamil Nadu have run into trouble as their developer struggles to complete land acquisition, prompting a request for a fourth extension of approval. NDR Infrastructure Pvt Ltd and Magnus Infrastructure Ltd, both part of the Chennai-based NDR Group, have been granted an additional year to secure land for their 125-acre projects in Ranipet and Tiruvallur districts.
The firms, which received in-principle approvals in June 2021 valid until June 2025, have sought an extension until June 2026. Rising land prices and procedural hurdles have slowed progress, underlining the challenges facing large-scale industrial projects in TN.
According to the filings, NDR has aggregated about 109 acres — roughly 44 hectares — against the required 125 acres (50.6 ha). SEZ rules mandate that land be contiguous, compelling the developer to buy adjoining parcels only. Negotiations with landowners have stalled as land valuations in the area have nearly doubled.
At the time of its original application, NDR Infrastructure Pvt Ltd held 80 acres and has since added 30. The developer said it has signed agreements for another 10-15 ha and expressed confidence of closing the gap if given more time. Magnus Infrastructure has faced similar hurdles. When it applied in 2021, it held 55 acres (22.25 ha) of the required 125. It has since acquired 23.25 ha, with agreements in place for 10-15 ha.
The companies contend that speculation driven by upcoming cement, fertilizer and petrochemical projects has inflated land prices to nearly double their original values. They are now negotiating with landowners and arranging financing to complete purchases at what as “reasonable” rates. The projects are part of NDR’s plan to expand its industrial and logistics footprint. The group already operates a Free Trade and Warehousing Zone at Nandiyambakkam.
The Development Commissioner of Madras Export Processing Zone, which oversees SEZ approvals, has reviewed the extension request and recommended it to the approval board, which cleared it last month. Company officials were unavailable for comment.