Bharat Forge-MIDC to set up 4,500 hectare SEZ but with changed conditions

PUNE: The Bharat Forge-MIDC promoted 4,500 hectare SEZ in the Khed-Chakan area, about 60 kms from Pune, has had a poor reception. So far, it has sold just one plot of 12 acres on the 1,000 hectare of land the JV holds.

"SEZs have lost their original meaning, with the new law which makes units located here pay tax and government is now setting up National Manufacturing and Investment Zones (NIMZs), which further erodes the attraction of SEZs," BN Kalyani, chairman and managing director, Bharat Forge said. Commenting on the sole purchase of a 12 acre plot in the SEZ, Mr Kalyani said, "Clearly, response to SEZs is poor."

The Bharat Forge SEZ is a 74:26 joint venture between the forgings major and the state-run MIDC, an industrial infrastructure developer. So far, the JV has acquired 1000 hectares of land and has notified another 700 hectares, comprising Phase I of the SEZ. The JV has so far paid out Rs. 289 crore to land holders for Ph I, at the rate of Rs. 17 lakh/hectare.

There is a move to ask the state government for a conversion of part of the SEZ into an integrated industrial park, which is being driven due to tax law changes and the 2008 global slowdown, when export markets vanished. Mr Kalyani said they have not approached the state government for a change in status although the local industry chamber has put forward such a proposal.

Meanwhile, "We are putting up the road infrastructure, building a four-lane highway off the Pune-Nashik highway. Then, after the road connectivity, we will set up the power and water infrastructure and follow that up with the internal infrastructure," he said.

Mr Kalyani pointed out that in any case, all of the 4500 ha would not have been devoted to manufacturing. "Since these locations are far from a city, they need their own infrastructure: housing,schools and hospitals. So all the land would not have been used for manufacturing units," he said.