The proposal for setting up a 'Nano City' to be promoted by Sabeer Bhatia, creator of Hotmail, as a joint venture with the Haryana State Industrial and Infrastructure Development Corporation was cleared by the Haryana state government, an official spokesman said.
The clearance for the HSIIDC and Nano Works Developers Private Ltd, a company promoted by Bhatia, was given at a meeting of the Haryana Investment Promotion Board held under the chairmanship of Chief Minister Bhupinder Singh Hooda.
The city, to promote work and research in nano-technology, would be developed over an area of 5,000 acres in Panchkula district in the first phase and additional 6,000 acres would be added in the second phase.
Bhatia, who was present during the meeting, has committed to mobilize Rs 2,500 crore initially, the spokesman said.
It was decided that the exact quantum of equity of the HSIIDC would be finalised after the preparation of the detailed project report.
The HSIIDC and Nano Works Developers Pvt Ltd would form a special purpose vehicle called Nano City for the implementation of the project. The state government would acquire 50 per cent of the land for the project.
The project is aimed at attracting best talent of the country and best entrepreneurs from across the world by providing quality manpower, one-stop clearance for projects, uninterrupted supply of water and power, communication network, including telecommunication and the Internet.
"The Nano City would be better than the Silicon Valley and will be eco friendly and a sustainable city," Bhatia was quoted as saying.
He said that his company would be responsible for marketing of the project to truly world class research and development and educational institutions from India and overseas, in addition to user companies in the field of cutting edge technologies in health, industry, research and consulting, pharmaceuticals, medical, agriculture, food and beverages and environment industries.
The Board also considered three other proposals for the grant of special concessions being given to prestigious projects under the industrial policy.
These included Grasim Industries Ltd. for the setting up of a cement-grinding unit, Gujarat Ambuja Cement Ltd. And J.K. Cement Ltd. for similar projects at Panipat.