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Infrastructure major IL&FS has proposed setting up of a marine and energy-based multi-product special economic zone (SEZ) in the Kutch region. Moreover, the SEZ is also set to house a 6000 Mw power plant in the SEZ.
According to Gujarat government sources, the upcoming SEZ is on track and is likely to get commissioned by fiscal 2018-19. It has also been learnt that IL&FS has set up a special purpose vehicle (SPV) for the execution of the project and have engaged experienced manpower and reputed consultants for the execution of the same.
The marine and energy based multi-product SEZ will house several units in sectors like engineering goods, textiles and handicrafts, shipping ancillary industry, non-metallic mineral products, logistics as well as other verticals like basic, allied, speciality chemicals & polymer products, plastic industry, pharmaceuticals & medicinal products. On the other hand, the 6000 Mw power plant in the SEZ will be partly coal-based and partly gas based project.
As per the company, while 4000 Mw of power will be coal-based and 2000 Mw will be gas-based.
While the estimated project cost for the SEZ could not be ascertained, that for the power project is estimated to be over Rs 28,000 crore for coal-based and over Rs 7,000 crore for gas-based.
The construction and development of the SEZ project shall be funded in a mix of debt and equity as is standard practice for all project financing.
What's more, IL&FS has already invested substantial equity into the project. Once all approvals for the development of the project are in place, the company is also likely to raise debt from the banks.
Meanwhile, for the funding of the units within the SEZ, the respective units will be financed by their respective companies.
