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Decision On Navi Mumbai Sez On Wednesday

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BUSINESS STANDARD
Last Updated : Jan 28 2013 | 12:29 AM IST

The Government of India will communicate its decision on the proposed City and Industrial Development Corporation (Cidco) promoted Navi Mumbai Special Economic Zone (SEZ) by Wednesday after a final presentation was made by industries secretary Vishwas Dhumal last week in New Delhi.

Dhumal said: "While the SEZ was earlier termed as the Dronagiri project, the inclusion of more areas in the Navi Mumbai region -- including Kalamboli, Ulwa and Belapur -- has broadened its scope and, therefore, the SEZ has been termed the Navi Mumbai SEZ. A central government decision is expected early this week."

It is expected that, by 2007-2008, approximately 218 units will be established, having an export potential of $2.2 billion annually, investments of $1.9 billion (Rs 9,600 crore) with FDI of $0.9 billion. Direct employment will be approximately 1.55 lakh. This is expected to expand to 845 units by 2014-2015, with an export potential of $8.7 billion annually, investments of $7.9 billion (Rs 39,283 crore), FDI of $3.8 billion and provide direct employment to about 5.34 lakh.

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The project cost is approximately $1.2 billion (Rs 5825 crore) with the land and buildings being contributed by Cidco valued at about $200 million (Rs 1000 crore).

A Special Purpose Company is to be formed with the strategic partner having majority and management control. Cidco is looking for a strategic partner who has a global presence, financial strength with large equity funding ability (about $150 million), having development experience and good marketing ability.

The SEZ, when fully completed, will occupy about 50 square kilometers. Industries having a high potential for exports and FDI potential such as biotechnology, pharmaceuticals, garments, electronics, agriculture and food processing industries are to be targeted. However, trading and logistics, gems and jewellery, machinery, auto ancillaries, toys and sports goods, plastics, leather products, cosmetic and toiletries are also being targeted.

On the regulatory front, the government of Maharashtra has recently announced its SEZ policy, which encompasses all the recommendations of the Arthur Andersen Consortium. This policy covers all aspects of environment, power, land, taxation, labour, management and administration, and infrastructure.

Cidco has also invited bids for the master planning of the zone, which received tremendous response. Major global planners like HOK, Nikken Sekkei, Mott McDonald, JTC, Townland Consultants, McClier and Gensler.

The ten year business plan was prepared by the Arthur Andersen Consortium comprising Arthur Andersen, Crisil and Chesterton Meghraj Property Consultants. A presentation of the same had been provided to Maharashtra chief minister Vilasrao Deshmukh on October 7, 2001.

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First Published: Dec 03 2001 | 12:00 AM IST

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