Bharat Forge plans auto components SEZ

Encouraged by the tax sops available to the special economic zones (SEZ), Bharat Forge, the forgings and auto components major, has plans to set up one in the near future.

It was learnt that the additional secretary in the Union commerce ministry, G K Pillay, while addressing a gathering of the city's real estate community said Bharat Forge has sought for a permission to develop SEZ over 5,000 acres.

Right now, the company is busy completing the procedural steps and tying up arrangements. Baba Kalyani, chairman of Bharat Forge, who is overseas, could not be contacted. The company's director Amit Kalyani too could not be contacted.

The ministry of commerce would give a simple, "in principle" approval for Bharat Forge's SEZs. However, the final approval may come only after the company decides on the location of the project and acquires land. The company's final application is expected to be submitted sometime this week.

The Centre's policy on formation of SEZs, permits private parties under certain conditions, which include availability of contiguous area of a minimum of 25 acre and at least 50 per cent of the total area being used for the activity for which the special export zone is proposed for.