Assam Co inks MoU for Rs 2k-cr SEZ in Gujarat

TIMES NEWS NETWORK[ TUESDAY, JANUARY 30, 2007 12:00:01 AM]

KOLKATA: Amid the countrywide furore over special economic zones (SEZs),
Assam Company has signed an MoU with Gujarat State Petroleum Corporation
(GSPC) to set up a Rs 2,000-crore hydrocarbon SEZ in Gujarat.

Abhay Chawdhry, director (finance) and chief financial officer at Assam
Co told ET, “We had signed the MoU with GSPC only a week ago. Assam Co
is already present in the oil sector and has the expertise to develop
the hydrocarbon SEZ.”

Even though Prime Minister Manmohan Singh has categorically said all
SEZs in the country have been put on hold, Assam Co does not foresee any
problems cropping up with its proposed SEZ. “There may be some delay but
we do not think our SEZ will face problems regarding land acquisition.
There’s plenty of land in Gujarat which is not strictly farmland,” he
added.

The project cost has been pegged at Rs 2,000 crore. “We expect to make
the SEZ operational by 2010,” Mr Chawdhry added. The MoU has been signed
at a time when GSPC has drawn up plans to actively participate in the
upstream hydrocarbon industry both in Gujarat and outside. It is an
aggressive participant in the New Exploration Licensing Policy (NELP)
rounds of bidding.

It also has plans to diversify into downstream petroleum projects,
including handling and distribution of LNG and pursuing coal-bed methane
projects. “We will float a special purpose vehicle for setting up this
SEZ. Both GSPC and Assam Co have decided to form a joint working group
to structure the SPV and prepare a roadmap for setting up the SEZ. The
land requirement for the SEZ is yet to be decided,” he said.

It has been decided that both companies will nominate two members each
to the joint working group that will structure the SPV. The committee
will be formed within a fortnight. According to the MoU, GSPC shall be
entitled to nominate the chairman of the board of the proposed SPV. Mr
Chawdhry said GSPC-Assam Co combine would invite the likes of Geosis,
Schlumberger and BJ to participate in the proposed hydrocarbon SEZ.

http://economictimes.indiatimes.com/News/Economy/Infrastructure/Assam_Co_inks_MoU_for_Rs_2k-cr_SEZ_in_Gujarat/articleshow/1523692.cms