Chandigarh, Aug 5 - Mukesh Ambani's Reliance Industries has asked for a two-year extension to launch its $5-billion special economic zone near Gurgaon, Haryana Chief Minister Chief Minister Bhupinder Singh Hooda said here Wednesday.

The group had floated a company named Reliance Ventures and signed an pact with the the state government's Haryana Industrial and Infrastructure Development Corp in June 2006 for forming a joint venture called Reliance Haryana Special Economic Zone.

But the promoters have sought some more time to complete the process to acquire the land for the 12,000-acre project, originally planned in an area of 25,000 acres, to be set up near Gurgaon along the Delhi-Jaipur National Highway.

'Reliance has sought two years for the completion of the process. The project will come up. The delay has been due to the economic meltdown,' Hooda told IANS in an exclusive interview here.

'We understand the problem is due to the economic meltdown. This will be overcome in some time,' the chief minister added, virtually recommending the grant of extension to the federal government's commerce and industry ministry.

This is the third extension sought by the group and is expected to be considered at the next meeting of the board of approvals on special economic zones, chaired by Commerce Secretary Rahul Khullar at a meeting scheduled Aug 11, officials said.

According to these officials dealing with the project, Reliance Industries was to bring an investment of Rs.250 billion ($5 billion) for the project, its largest so far outside western India.

The mega-project, touted to be the biggest of its kind at that time, had a 90 percent stake from Reliance while the state agency holding the rest. The deal was signed in the presence of Reliance chairman Mukesh Ambani and chief minister Hooda in June 2006.

'The Reliance people are not showing much interest in the project any longer.