The proposed SEZ will come up on a 800-acre land. The group has the Rs 90-crore land in its possession through its wholly-owned subsidiary Jaiprakash Engineering and Steel Company (Jesco).
The company has roped in IL&FS as advisors for this effort. The coastal SEZ will be wholly developed in the private sector and will be developed for general purpose such as manufacturing, trading and services.
It is learnt that the Oil and Natural Gas Corporation (ONGC) and the New Mangalore Port Trust (NMPT) have evinced interest in promoting investments as part of the SEZ.
It is also learnt that ONGC and NMPT will be promoting investments within their respective spheres and extend support to the SEZ as anchors, investors and promoters.
Jesco has also signed an MoU with Kanara Chamber of Commerce and Industry, which will enable Jesco to identify the co-developer.
Initially, Nagarjuna Group has planned to put up a steel plant on the land but has given up its efforts later for various reasons.
The Ministry of Commerce and Industries has given an approval in principle for the project. The companies in the SEZ will have a single-point clearance system and minimum inspection requirement under the state laws and rules.
In addition to this incentive, supply of goods from domestic tariff area to the SEZ units will be exempted from the state sales tax, octroi, mandi tax, turnover tax etc.
Besides being treated as a foreign territory, SEZs will be a designated duty-free enclave. The Government of India is setting up a slew of SEZs with a view to provide an internationally competitive and hassle-free environment for exports.
Though the units in the zone have to be net foreign exchange earners, they will not be subjected to any pre-determined value-addition of minimum export performance requirements. The Karnataka government has already set up an SEZ in Hassan under its own purview.
