Now 1st port-based SEZ from Bajaj Infra

MUMBAI: Balaji Infra Projects Ltd has obtained regulatory approvals to set up India's first port-based SEZ and Free Trade & Warehousing Zone (FTWZ) at Dighi, Maharashtra, where the company is also setting up the state's first private port at an investment of Rs 1,200 crore.

Three steel majors--Ispat Industries, Uttam Galva and Essar--have already signed MoUs with Dighi Port Ltd for using the port for importing and exporting their products, Vijay Kalantri, the company's Managing Director told PTI here today.

"We have also signed an agreement with the Port of Venice for transfer of cargo and technology-knowledge," he revealed.

The company has also obtained an in-principle approval for rail connection between Dighi and Mangaon at an estimated cost of Rs 200 crore. This will be done through a special purpose vehicle (SPV) comprising of sister company Balaji Infra, IL&FS, Rail Vikas Nigam Limited, which will decide on the financial model and Konkan Railway will implement the project.

The company will be bringing in Rs 600 crore in two tranches, one this year and the second in the next. IL&FS, a co-developer of the project, has also evinced interest in picking up to 15 per cent stake in the project, Kalantri said.

While the project will be completed by 2009, the port is already functional in a small way and already 0.75 million tonnes of cargo has been exported from here.