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Wanda's Promised $10 Billion Investment Won't Come Now: Geetanjali Gayatri Tribune News Service Chandigarh, November 5

The $10 billion investment promised by Wanda Group in Haryana, India after Chief Minister Manohar Lal Khattar's visit to China in January 2017 has failed to materialize. Wanda Group ran into financial difficulties in China, with its entire business getting liquidated, causing it to lose interest in the Haryana project. Negotiations over equity share breakdown between Wanda and the Haryana government also fell through, with Wanda only willing to offer 19% stake compared to the 26% sought by Haryana. With no communication in over 4 months, the Haryana government has given up hope on the promised investment.

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88 views2 pages

Wanda's Promised $10 Billion Investment Won't Come Now: Geetanjali Gayatri Tribune News Service Chandigarh, November 5

The $10 billion investment promised by Wanda Group in Haryana, India after Chief Minister Manohar Lal Khattar's visit to China in January 2017 has failed to materialize. Wanda Group ran into financial difficulties in China, with its entire business getting liquidated, causing it to lose interest in the Haryana project. Negotiations over equity share breakdown between Wanda and the Haryana government also fell through, with Wanda only willing to offer 19% stake compared to the 26% sought by Haryana. With no communication in over 4 months, the Haryana government has given up hope on the promised investment.

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nehra72
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Wanda’s promised $10 billion investment won’t come

now
22 months after CM’s China visit, project turns into pipe dream

Geetanjali Gayatri
Tribune News Service
Chandigarh, November 5
After Chief Minister Manohar Lal Khattar returned from his China
visit in January last year, the BJP government in Haryana had gone to
town claiming that it was the next big thing on the state’s investment
map, with Wanda Industrial New City setting up shop with investment
value of $10 billion.
Khattar might have counted his chickens before they hatched because
a year and a half later, the project seemed to have come a cropper. The
Chief Minister had admitted in a muted voice that the promised
investment was not happening anymore.
Sources in the Industries Department claimed that China’s Wanda
empire had run into rough weather in its home country and fallen on
hard times, with the entire business getting liquidated, after which it
stopped pursuing the Haryana project.
According to information available, the government last heard from
the Wanda group about four months back, after which there had been
no communication.
Earlier this year, the sources said the memorandum of understanding
to develop a world-class comprehensive industrial park, to be known
as Wanda Industrial New City, had hit a roadblock in Haryana as well.
While the group was not willing to offer more than 19 per cent stake to
the Haryana Government in what was supposed to be a joint venture
with the HSIIDC, the latter wanted 26 per cent ownership in the
proposed project to have the right to veto, if and when a situation
arose.
This was being termed as a deal-breaker with both parties unwilling to
relent though talks were still on for the same when the Wanda group
fell out with the government there. The issue of equity was still
unresolved when the group lost interest, given its own ground
situation.
Apart from the disputed offer of higher equity to the Haryana
Government, the Wanda group, it was learnt, had also asked for many
other relaxations.
The sources said the Wanda group’s investment plan included
construction of five industrial and theme parks, in addition to
shopping malls, in the Wanda Industrial New City, which was to be
located in the Delhi-Mumbai industrial corridor within the National
Capital Region.
While Phase I of the project comprised an industrial park in Sonepat
for companies in software, automotive manufacturing, machinery and
healthcare education, the construction of Wanda Cultural Tourism
City and a residential district was also on the cards.
However, not having heard from the group for four months, the
government had practically written off the investment that was slated
to come into Haryana and had been focussing on the other
memorandums of understanding it had signed during Khattar’s trips
abroad.
A cruel blow
 The Wanda empire in China has fallen on bad times and its entire
business is getting liquidated. Hence, it stopped pursuing the
Haryana project.
 The group was not willing to offer more than 19 per cent stake to
the Haryana Government in what was supposed to be a joint
venture with the HSIIDC. The government wanted 26 per cent
ownership in the proposed project to have the right to veto.

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