Sahara says confident of resolving issues at Macedonia project

With one of its Macedonian projects facing a possible cancellation, Sahara group today said it is confident of resolving the issue and its other proposed ventures in that country are progressing on track.

The group had won a contract in July 2013 for an agriculture and dairy project in Macedonia, but the Macedonian Ministry for Agriculture recently launched a process to cancel the agreement signed with the Indian group.

Besides, the Ministry also plans to activate a three million euro guarantee given by Sahara Group as part of the deal to develop farming area near the city of Sveti Nikole.

Replying to queries in this regard, a Sahara group spokesperson told PTI: "Sahara India Pariwar is in advance stage of executing its business plans in Macedonia and there is no question of stepping back from any of its projects in the country."

"The preparation for the development of the Mother Teresa monument and Mother Teresa Home in Municipality of Ilinden has already been completed. While the expansive renovation of the famous Slavija Hotel in Ohrid will commence, post Christmas this year. The projects will be executed by the ace contractors of Macedonia."

About the agriculture and dairy project, the spokesperson said that the group is "working to arrive at amicable solutions to some specific queries of the Ministry of Agriculture, Forestry and Water Supply".

"We are confident that it will get resolved. As far as the decision taken regarding the bank guarantee is concerned, we feel that it will have a negative impact on this mega project which happens to be in the early stage of execution.

"We can understand why the Macedonian Government took this step and we are prepared for the consequences. We will follow every Government decision and we will stay committed towards fulfilling our obligations.

"This is not just one project of Sahara India in the country (and) Macedonia is an important focus point for our offshore business and we are happy to partner with the fast developing country," he added.

As part of this deal, Dzumajlija, a troubled farming company in Macedonia, along with a dairy plant and a host of other facilities, was leased to Subrata Roy-led Sahara group.

The group's plans for this project included large-scale milk and cattle feed production, as also exports to Balkan, Middle Eastern and North African countries, local media reports said, while adding that the problems with the project began soon after Roy was jailed back in India.

Local media reports in Macedonia also quoted a Ministry spokesperson as saying that several meetings were held with Sahara before a decision was taken for activation of the bank guarantee.

The queries sent to the Ministry remained unanswered.