SKIL, IL&FS to set up engineering SEZ at Pipavav
A need for better synergy is driving two big players in the state to speed up allied projects.
By Harit Mehta, TNN |
AHMEDABAD: A need for better synergy is driving two big players in the state to speed up allied projects. While a consortium of Mumbai-based SKIL and IL&FS has decided to develop an engineering special economic zone in Pipavav to support its shipbuilding yard, the Rs 18,000-crore Adani group has put the ship-building yard project in Mundra on the fast track to support its SEZ.
SKIL-IL&FS, a joint venture company has already roped in Sembawang Shipyard, a Singapore-based company, to carry out the Rs 2,500-crore SEZ project. “The consortium will invest Rs 750 crore in the first phase,” says a source close to the development.
Analysts say while SEZ will give a boost to activities in the shipyard, the ship-building industry will attract players to SEZ. Sources say Adanis have realised the ship-building yard has to come up as fast as possible so that it complements its upcoming SEZ project.
Adanis are said to be in talks with a number of Korean companies for possible tie-ups and even equity participation for the shipyard. Ship-building depends on a number of industries, and once the shipyard becomes operational, these industries will set shop in Mundra SEZ, believe industry sources.
However, SKIL-IL&FS plans to develop the infrastructure in the next two years for the project. The debt-equity ratio for the project will be 1.5:1. Already, a large number of companies into specialised engineering activities, including offshore construction, have shown interest in setting up units in SEZ, which will come up over 1,100 acres.
The promoters will develop 600 acres in the first phase. The project is likely to come up for discussion and approval in the meeting of state-level SEZ development authority to be held this week. This is the second engineering SEZ proposed near Pipavav, the first private port of India. Saw pipes maker PSL has signed a MoU with the Gujarat government for setting up engineering SEZ.
SKIL-IL&FS, a joint venture company has already roped in Sembawang Shipyard, a Singapore-based company, to carry out the Rs 2,500-crore SEZ project. “The consortium will invest Rs 750 crore in the first phase,” says a source close to the development.
Analysts say while SEZ will give a boost to activities in the shipyard, the ship-building industry will attract players to SEZ. Sources say Adanis have realised the ship-building yard has to come up as fast as possible so that it complements its upcoming SEZ project.
Adanis are said to be in talks with a number of Korean companies for possible tie-ups and even equity participation for the shipyard. Ship-building depends on a number of industries, and once the shipyard becomes operational, these industries will set shop in Mundra SEZ, believe industry sources.
However, SKIL-IL&FS plans to develop the infrastructure in the next two years for the project. The debt-equity ratio for the project will be 1.5:1. Already, a large number of companies into specialised engineering activities, including offshore construction, have shown interest in setting up units in SEZ, which will come up over 1,100 acres.
The promoters will develop 600 acres in the first phase. The project is likely to come up for discussion and approval in the meeting of state-level SEZ development authority to be held this week. This is the second engineering SEZ proposed near Pipavav, the first private port of India. Saw pipes maker PSL has signed a MoU with the Gujarat government for setting up engineering SEZ.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
