Reliance plans to invest Rs 600 bn for digital industrial area in Mumbai

The first day of the Magnetic Maharashtra investors’ summit here on Sunday saw Reliance Industries Ltd (RIL) promising investments of Rs 600 billion into the state, the Mahindra Group pledging Rs 23.25 billion and the Virgin Group signing an “intent agreement” with Maharashtra to build a hyperloop transportation system between Mumbai and Pune, to reduce travel time to 20 minutes from the three hours at present.

Billionaire industrialist Mukesh Ambani said his RIL and its global partners will set up the country's first integrated digital area in Maharashtra, entailing investments of Rs 600 billion.

“Reliance along with other global companies will invest over Rs 60,000 crore (Rs 600 billion) in the next 10 years in Maharashtra, which will be the first integrated digital industrial area in the country,” Ambani said on the opening day of the summit. He did not offer more details like the location of the proposed mega investment or when the first phase will begin.

The summit was inaugurated by Prime Minister Narendra Modi.

“Within a few weeks, more than 20 global companies have already agreed to invest with us. These companies include Cisco, Siemens, HP, Dell, Nokia and Nvidia among others,” Ambani said.

Meanwhile, the first hyperloop route will link central Pune with the megapolis as well as the Navi Mumbai international airport.

Virgin Group Chairman Richard Branson said, “We have signed an agreement with Maharashtra to build a Virgin Hyperloop between Mumbai and Pune, beginning with an operational demonstration track in the region.”

Also, the Mahindra Group announced over Rs 23 billion in investments in three projects of which as much as Rs 17 billion will be spent towards creating an entertainment destination at Kandivali, a northwestern suburb of Mumbai. Group Chairman Anand Mahindra said his software company Tech Mahindra will invest Rs 1.25 billion to create an all-green tech hub in Nagpur that will create at least 2,500 jobs.

On the Rs 17 billion investment announced in the city, Mahindra said, "we are exploring to set up a unique film-centric entertainment destination on our land at Kandivali in the city as Mumbai is the heart of Hindi film industry… This will create hundreds of direct and indirect jobs and we plan to spend Rs 1,700 crore (Rs 17 billion) on this venture," he said.

It can be noted that the group already runs a successful tour and leisure services company Mahindra Holidays and this announcement hints that the group is ready to tap tourism and related segments in a more aggressive manner.

He also said the company will invest another Rs 5 billion in the state for which his group has "executed an agreement with Maharashtra for an investment of Rs 500 crore (Rs 5 billion) under the new electric vehicle policy."