Jebel Ali to invest in SEZ projects

With the announcement of allowing 100 per cent foreign direct investment (FDI) in the free trade zone sector made on Tuesday by the Union Minister of Commerce and Industry, Kamal Nath, Jebel Ali Free Zone Authority (JAFZA), which runs one of the world's top five free trade zones in Dubai, has shown its keenness in setting up a FTZ/SEZ (Special Economic Zone) in India.

Calling it a "very positive step," Managing Director of Ports, Customs & Free Zone Corporation (PCFZC), Mohammad Sharaf, told Business Standard on Tuesday that though earlier, PCFZC was considering to invest as a minority stakeholder in an Indian SEZ, with the new announcement, PCFZC, a United Arab Emirates (UAE) government-run enterprise, may finally own a free trade zone in India.

Jebel Ali Free Zone, which is spread over 100 square kilometres and located conveniently within the close proximity of the port run by the Dubai Ports International (DPI), also run by PCFZC, has an international arm, Jebel Ali Free Zone International, through which the corporation is planning to invest in India.

"We are holding talks with various Indian entities, including the existing SEZ owners and as we now enjoy the advantages of a known entity because of the DPI's investment in two ports in the country, the corporation is now serious of making investment in the SEZ/FTZs also. Right now, I will not be able to divulge the name of the parties concerned with whom we are talking to, but a FTZ in the line of Jebel Ali will not be a distant dream for the Indian infrastructure sector," Sharaf had said earlier.

Adding that following Kamal Nath's announcement, the corporation has started studying the new policy in detail, Sharaf said, "About the quantum of investment and location, we will comment after understanding the new policy papers only. By then, we also expect that our talks with various bodies in India for investment would be in an advanced stage."