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MUMBAI-Emaar Group plans to invest $1.5 billion in Haryana after the Indian Government cleared the way for the first sizeable foreign investment in special economic zones. The Dubai-based group plans to set up 10 SEZs in Haryana at an estimated cost of $1.5 billion. These include three multi-product SEZs, one for gems and jewelry, one for auto components and five for information technology.

At the same time, the government formally cleared 23 proposals, including Sem India's Fab City project, Infosys Technologies' proposal for an IT project and Cadila's proposal for a pharma project. "The board of approval [an inter-ministerial body for SEZ proposals] has given approval only in principle since the company is yet to submit details regarding land for the project," an official says. Emaar, however, has informed the board that most of the land is private.

SEZs are intended to accelerate economic investment in an area but several such projects in Haryana are running into trouble. A proposed IT SEZ of DLF had to be put on hold since land for the project was in a no-construction zone. Another proposal that received in-principle clearance today is an IT SEZ at Bangalore being set up by TCS and Singapore-based Ascendas.