SAIL sails on its SEZ project
SAIL starts work on its SEZ project dedicated to the steel sector.
By TNN |
NEW DELHI: Steel major SAIL has kick started its project of setting up a special economic zone (SEZ) dedicated to the steel sector.
The PSU has signed a Memorandum of Understanding (MoU) with IL&FS Infrastructure Development Corporation (IIDC) to form a special purpose vehicle (SPV) which will develop, operate and maintain the SEZ. The SEZ will come up on surplus land near SAIL’s Salem stainless steel factory.
SAIL and IIDC will hold equal stake in the proposed SPV, which will be formed within a month. As per the MoU, SAIL will provide land while IIDC will provide advisory and other related services for the SEZ.
However, the Centre is yet to approve the proposal. "SAIL’s proposal to set up a SEZ is unlikely to face any problems as the entire land for the project is already owned by the PSU," a SAIL official said adding that the proposal may come up for approval in October.
The SEZ is to be developed in an area of about 250 acres adjacent to the Salem Steel Plant (SSP).
SAIL will play the role of a lead anchor by providing customised steel products to prospective units in the SEZ, which could be set up to manufacture architectural facades, dairy plants, chemical and pharmaceutical plants, machines for the food processing industry, tubes and pipes, auto component and panels for lifts.
SAIL expects that the SEZ will create an assured demand for SSP’s stainless steel production. As the developer of SEZ, SAIL will also receive benefits like land lease rentals, tax concessions and earnings from provision of services to the SEZ.
IIDC is a wholly-owned subsidiary of IL&FS and is engaged in advisory and project development activities across diverse sectors.
The PSU has signed a Memorandum of Understanding (MoU) with IL&FS Infrastructure Development Corporation (IIDC) to form a special purpose vehicle (SPV) which will develop, operate and maintain the SEZ. The SEZ will come up on surplus land near SAIL’s Salem stainless steel factory.
SAIL and IIDC will hold equal stake in the proposed SPV, which will be formed within a month. As per the MoU, SAIL will provide land while IIDC will provide advisory and other related services for the SEZ.
However, the Centre is yet to approve the proposal. "SAIL’s proposal to set up a SEZ is unlikely to face any problems as the entire land for the project is already owned by the PSU," a SAIL official said adding that the proposal may come up for approval in October.
The SEZ is to be developed in an area of about 250 acres adjacent to the Salem Steel Plant (SSP).
SAIL will play the role of a lead anchor by providing customised steel products to prospective units in the SEZ, which could be set up to manufacture architectural facades, dairy plants, chemical and pharmaceutical plants, machines for the food processing industry, tubes and pipes, auto component and panels for lifts.
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SAIL expects that the SEZ will create an assured demand for SSP’s stainless steel production. As the developer of SEZ, SAIL will also receive benefits like land lease rentals, tax concessions and earnings from provision of services to the SEZ.
IIDC is a wholly-owned subsidiary of IL&FS and is engaged in advisory and project development activities across diverse sectors.
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