Indore SEZ selloff may take six months

Bureaucrats at the Mantralaya (secretariat) had chalked out plans to sell off the state government stake and called bids from private parties but even one year after the short-listing process is over, the privatisation could not take place.

Companies like SRF, Flexituff and Amulya Exports have started operations in Phase one of the SEZ but the second phase is still hanging in the balance.

An industry source said, "A number of companies have suspended their investment plans. The Madhya Pradesh State Industrial Development Corporation had appointed Tata Economic Consultancy Services for short-listing bidders and the company had finalised seven companies.

"The name of the private company which will take stake in the SEZ has yet not been decided," the source said.

The Pithampur SEZ project has been estimated at Rs 1100 crore and the equity after privatization will be in ratio of 1:3 that is government's stake will be Rs 100 crore. The private partner will be allowed to raise fund through debt instrument from any financial institution. "The process will take another six month," Principal Secretary OP Rawat told Business Standard.

According to government sources L&T, Gammon India, a Tata and a Mahindra & Mahindra owned company were in the fray among finalists.

Further the loans in dollars is also not available the SEZ as it has been planned earlier.