Mundra SEZ to invest Rs 3,000 cr

Adani group entity looks for foreign equity partners for SEZ in Mundra

Mundra Special Economic Zone Ltd (MSEZL), an entity of the Ahmedabad-based multi-diversified Adani Group, is now looking for a foreign equity partner for its various upcoming infrastructure development projects to be taken up for the zone.

MSEZL has been developing an SEZ on 120 square kms of land near Gandhidham in Kutch district of Gujarat.

MSEZL, which is also open for an initial public offer (IPO) in a later stage, will invest Rs 3,000 crore in next three years for developing the zone which, however, would be mostly funded through internal accruals of the group and possible joint ventures in various infrastructure projects for the SEZ.

MSEZL is also exploring possibilities of setting up an airstrip within 10 kms from the SEZ as the existing nearest airport is located in Bhuj town which is around 60 kms away from the SEZ site, also located within close proximity to Kandla Port.

"We have already acquired 50 square kms of land for the zone, close to Mundra Port, being operated by one of the group companies. We are on various stages of acquiring 70 square km of land to make MSEZ even bigger than Jebel Ali Free Zone in Dubai, considered as one of the largest zones in the world," Sanjay Gupta, chief executive officer of Adani Group, said.

"While the total investment of the company is expected to cross Rs 7,000 crore in the next five years, MSEZL will invest Rs 3,000 crore in the next three years. Going public may be one of the options for us," said Gupta.

Gupta, who has recently been to the United Arab Emirates (UAE) to hold talks with various industry groups and Free Zone authorities for sharing ideas, said with the Development of Ports, Customs and Free Zone Corporation (PCFZC) of Dubai Government now looking for investment in SEZ projects in India, MSEZL would be open for such offer.

"We are open to any such offer, specially if it comes from one of the such bodies in this sector, but we can decide about sharing stakes only after another few rounds of fruitful talks with them," said Gupta.

Mohammad Sharaf, managing director of the corporation, which handles Dubai Ports and also Jebel Ali Free Zone, has recently expressed interest in the Mundra SEZ project.

Jebel Ali Free Zone, which houses over 3,000 companies, is spread over 100 square kms and enjoys close proximity to Dubai Port.

Gupta said, "By January next year, we will start intensive international marketing with focus on Gulf and the Emirates. We will also target Indian industrialists operating from various free zones in that region. We have already initiated talks with various industry bodies in the UAE and the Gulf for setting up their industrial units in MSEZ. We will also seek help from the government of India and industry bodies to sell the zone in various other countries."

MSEZ is expected to start operating in first phase from the fourth quarter of 2005.