SAIL, IIDC to jointly set up steel SEZ
State-run SAIL has entered into a pact with IL&FS Infrastructure Development Corporation (IIDC) to develop a steel sector special economic zone at Salem in Tamil Nadu.
By PTI |
NEW DELHI: State-run SAIL has entered into a pact with IL&FS Infrastructure Development Corporation (IIDC) to develop a steel sector special economic zone at Salem in Tamil Nadu.
As per the Memorandum of Understanding (MoU), SAIL would provide land for the project and IIDC, a wholly-owned subsidiary of IL&FS, would provide advisory and other related services for the SEZ, SAIL said in a statement.
The application for approval of the SEZ would be submitted to the government and is likely to be considered by the Board of Approvals in October. The two companies will form a special purpose vehicle for implementing the project and will hold equal equity in the new entity.
The company would provide customised steel products to prospective units in the SEZ which could be set up to manufacture architectural facades, railway applications, chemicals and pharmaceuticals plants, machines for the food processing industry, tubes and pipes and auto components.
SAIL said the proposed SPV would create a stable demand for its products manufactured at the Salem steel plant.
The company would also recieve the benefits provided to an SEZ developer in the form of land lease rentals, tax concessions and earnings from provision of services to the zone.
As per the Memorandum of Understanding (MoU), SAIL would provide land for the project and IIDC, a wholly-owned subsidiary of IL&FS, would provide advisory and other related services for the SEZ, SAIL said in a statement.
The application for approval of the SEZ would be submitted to the government and is likely to be considered by the Board of Approvals in October. The two companies will form a special purpose vehicle for implementing the project and will hold equal equity in the new entity.
The company would provide customised steel products to prospective units in the SEZ which could be set up to manufacture architectural facades, railway applications, chemicals and pharmaceuticals plants, machines for the food processing industry, tubes and pipes and auto components.
SAIL said the proposed SPV would create a stable demand for its products manufactured at the Salem steel plant.
The company would also recieve the benefits provided to an SEZ developer in the form of land lease rentals, tax concessions and earnings from provision of services to the zone.
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