Did Rahul Bajaj, Mukesh Ambani lock horns over SEZ?

Rahul Bajaj made his debut as a parliamentarian today and began by taking on the government's SEZ policy. But like a tactful politician, he dismissed reports of having clashed with Mukesh Ambani at a meeting with the Prime Minister last week reports CNBC-TV18.

Chairman, Bajaj Auto, Rahul Bajaj said, "I couldn't understand what Kamal Nath tried to explain. But if people like him are in the government and the government accepts this, there must be something, but I can’t understand."

Mukesh Ambani seems to be off the hook but Commerce Minister Kamal Nath is in the firing line. At the Prime Minister's Trade And Economic Council in the capital last week, Rahul Bajaj and Mukesh Ambani reportedly locked horns over the government's SEZ policy.

Bajaj says that the government shouldn't encourage foreign investment at the cost of domestic players. He also feels that the government is ignoring existing industrial hubs and says the SEZ policy will benefit the bigger plays.

While Bajaj and Ambani may have differed on SEZs, they were together on the demand for setting up manufacturing and services hubs catering to domestic players with the same incentives as SEZs.

Chairman, Bajaj Auto and Rajya Sabha MP, Rahul Bajaj said, "Mukesh Ambani is the country's top industrialist and my younger brother, but I will speak whatever is good for the country."

The PM's trade council had recommended setting up international financial hubs in the country. Sources say that Mukesh Ambani pitched for the first hub to be set up in a Reliance SEZ in Mumbai.

Ambani also told the Prime Minister that the biggest stumbling blocks for industry were water and power shortages, a concern echoed by Rahul Bajaj.