V-Guard, one of the leading electrical and electronic appliances group, has postponed its plans to set up two water theme amusement parks with an aggregate investment of up to Rs 1,200 crore because of land acquisition problems.

The group has shelved its plans of setting up parks near Panvel in Navi Mumbai, following the phenomenal rise of land prices at the proposed site.

V-Guard group was planning a new theme amusement park in Mumbai -Pune Highway over 110-120 acres of land. The company has embarked investment worth Rs 150-200 crore for the setup of these two amusement parks, including a convention centre and a hotel, at a cost of Rs 1,000 crore.

During a press conference, Mithun Chittilappally, Executive Director, V-Guard said "About one-and-a-half years ago, we had acquired over 60 acres at Rs 4-5 lakh per acre at the planned site, but property prices in the area shot up to more than Rs 40 lakh per acre due to special economic zones and the proposed international airport. We require about 150 acres more. But, at the current price, it is unviable to pursue the project in Panvel," he said. 

The group is proposing to sell off the acquired property and shift the project to Tamil Nadu, where the state government has assured to provide the necessary support.

The company already operates two amusement parks under the brand name Veega Land in Kochi and Wonderla in Bangalore.