Hindalco's SEZ in MP to get Rs 20,000 cr

Hindalco Industries Ltd, the flagship company of the Aditya Birla group, has proposed to set up a sector-specific special economic zone in Village Bargawan (District Sidhi of Madhya Pradesh).

The proposed SEZ is expected to get an investment of more than Rs 20,000 crore, where Hindalco will invest Rs 18,000 crore and the rest of the investment will come up from downstream projects. The project is expected to generate more than 10,000 jobs.

The MP government and Hindalco signed a deal on May 23 this year, by which the latter promised to invest Rs 18,000 crore to set up an aluminum smelter plant and a captive power plant in Sidhi in a phased manner.

In support of the proposed SEZ, the company has said the SEZ will export sufficiently; however, there will be some sales in the domestic tariff area also, which will attract local taxes.

Hindalco further said there was tremendous scope for setting up world-class quality units for manufacturing downstream products such as aluminum composite panels for architecture purposes; painted sheet for roofing paneling; units for automobiles; sophisticated cookware; heat exchange units for chemical plants; sports bicycles; forged components for aerospace, aircraft, and automobiles; defence items; and research and development units for aluminum processing and finishing.

"For aluminium produced worth Rs 100, value-added products of about Rs 175 will be created," the company said in a statement.

"The proposal has been submitted to the state government. The Project Clearance and Implementation Board will soon decide whether to recommend it to the Board of Approval," said a government source.

The SEZ will cover an area of 2,025 hectares with a processing area of 1,200 hectares, while a major portion of the SEZ would be for the captive use of the company, where a captive power plant of 750 Mw will come up.

The SEZ will also house other ancillary units required to support manufacturing facilities as well as for the manufacturing of other related and other value-added products.

"The proposed SEZ will attract investment in the aluminum sector, including manufacturing aluminum products. It is estimated that the investments in the SEZ by the developer (Hindalco) and other various ancillaries and downstream industries/facilities will be in excess of Rs 20,000 crore," the company said in its application to the department of industries.