Orissa to host Tatas’ multi-product SEZ

NEW DELHI: We also make steel - Tata Steel’s famous punchline always carried loads of panache, but now it’ll pack real punch with the company planning to develop a multi-product special economic zone (SEZ) at Gopalpur, Orissa. The coastal land, around 3,200 acres, was initially acquired for a steel plant.

“The company has informed the state government about its plans to incorporate a special purpose vehicle (SPV) for setting up a multi-product SEZ at Gopalpur,” a senior official of the Orissa government told ET. The company, in its communication, has said the proposed SPV would be registered within a couple of weeks.

A Tata Steel spokesperson confirmed the development: “Yes, there is a definite proposal to set up SEZ. We are, along with the state government, for setting up the project.” He, however, added that investment plans and other modalities are yet to be finalised.

Tata Steel has informed the state that other group companies such as Tata Housing, Tata Finance may also join the proposed SPV as partners. Sources said strategic partners might also be invited to join SPV at a later stage.

Once a final proposal is ready, the state government would recommend to the Centre to clear the SEZ, state government officials said. It’s understood that all clearances for the project may be granted in a month’s time.

Gopalpur is a coastal area being developed by the Orissa government as a major industrial hub. Apart from SEZ, the state government is also planning to build a large port there with private participation. While Tata Steel earlier proposed to set up a 6-million tonne steel plant there, it backed out, citing scarcity of water. It moved the proposed steel project to Kalinganagar while looking at an alternative development model for Gopalpur. The company has already spent about Rs 200 crore for land acquisition.

Tata Steel earlier wanted the state government to join its proposed SEZ venture as a JV partner. The government, however, declined its proposal, and instead offered its help as a facilitator.