Pithampur SEZ still awaits developer

Selling the Pithampur Special Economic Zone has been delayed. The Madhya Pradesh industrial department and its Indore-arm Audyogik Kendra Vikas Nigam, Indore (AKVN), have to appoint a consultant for the purpose.

Earlier, Tata Consultancy Economic Services had been appointed consultant. The firm had shortlised a few firms but the department has started the process again.

A special purpose vehicle (SPV) has been created for public-private partnership wherein the new consultant will shortlist the private partner.

"The ratio in the Rs 3,600 crore SEZ will be 74:26," said AKVN (Indore) Managing Director Ashish Shirvastava, adding, "of this Rs 200-300 crore will be the equity of the partner, Rs 400 crore loan, and the rest of the amount will be raised through child SPVs. The bidding process will start soon."

The private partner will have to enter into tie-ups with firms operational in the SEZ for infrastructure creation. The first phase of the SEZ, covering more than 1,000 acres of land, is already operational. As many as 31 companies have been allotted land.

However, the sell-off of the second phase is yet to take place. "This time we will have more and competent bidders as a number of proposals have come in for the creation of private SEZs," said Madhya Pradesh State Industrial Development Corporation Managing Director Praveen Garg.

According to an insider in the department, a number of real estate players have proposed creating SEZs but the acquisition of private and arable land is a tough task for the department. Almost all the SEZs have been proposed in Indore but none has taken shape so far.

The Aditya Birla group had proposed an SEZ in Sidhi and another private firm wanted to set up one in Dabra.

The state government has planned to develop Gwalior Counter Magnet City as an Information Technology SEZ. The Centre has decided to award Crystal IT park (a facility created for Information Technology) IT-SEZ status.