Tuesday, February 20, 2007

Mukesh aide to head Mumbai SEZs; Reliance Cos to fund them


Tuesday February 20 2007 00:00 IST
PTI

Mukesh aide to head Mumbai SEZs; Reliance Cos to fund them PTI

MUMBAI: The two Reliance multi-product SEZs coming up in the city
outskirts - Mumbai Special Economic Zone (MSEZ) and Navi Mumbai special
economic zone (NMSEZ) would be funded by Reliance-promoted Companies and
headed by Mukesh Ambani's point person Anand Jain.

"Anand Jain would be the chairman of these two SEZs (MSEZ and NMSEZ)
coming up in the outskirts of Mumbai. Reliance Group companies would be
the promoters for them," NMSEZ president, Corporate Communication, Dilip
Chaware said here.

The Company is developing the NMSEZ in a joint venture with CIDCO, a
Maharashtra government agency that has 26 per cent stake in the project.
Asked if group flagship Reliance Industries would fund these projects,
Chaware said "no". He, however, declined to divulge any further details
of the group Companies that would pump in the money.

Asked if Mukesh Ambani would control some direct stake in the SEZs he
said: "Mukesh Ambani-led Reliance Group companies and Anand Jain would
be the shareholders of these SEZs."

A special purpose vehicle (SPV) would be created for these SEZ's and
there will also be a separate SPV for developing infrastructure
facilities. On the land acquisition issue, Chaware said the NMSEZ would
require 4,000 hectares of which 1,600 hectares have been sanctioned by
the state government and the remaining is yet to be sanctioned.

A minimum of 1,000 hectares is required for acquiring to obtain the
final notification. The project has got all the required environment
clearances and is awaiting the Union government approval on the
notification.

Apart from investment of Rs 15,000 crore in developing infrastructure in
the two SEZs, an additional Rs 16,000 crore will be spent on development
of Rewas Port (Rs 3,000 crore), trans harbour link (Rs 4,000 crore),
water supply (Rs 1,000 cr) and a 2,000 mw power plant (Rs 5,000 crore)

Both SEZs would be developed as integrated projects and would establish
a city in the demarcated areas, Chaware said. He said land acquisition
for the MSEZ is expected to be completed by the year-end and the two
mega SEZs will be developed over a period of 10-15 years.

Though it was difficult to give the exact number of units that can be
set up in these two SEZs he said, at least Rs three lakh crore worth of
investment was expected, providing employment for at least two million
people of which one million would live in the mini city.

The two SEZs are expected to export goods worth Rs 50,000 crore
annually, he said. He said the package of commensuration announced on
Monday was the best so far offered in the industry and the Company was
awaiting the recommendation of the state government- appointed committee
in this regard.

Chaware favoured limited number of SEZs in the country with smaller ones
joining hands with mega SEZs to from townships as in China. The
Singapore-based Jurong Corporation, a world leader in infrastructure,
has been entrusted the development of the two SEZs.
http://www.newindpress.com/NewsItems.asp?ID=IEB20070219111712&Title=Business&rLink=0

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