Reliance to set up Rs 15000 cr SEZ

Reliance Industries Ltd (RIL) would be setting up a port-based special economic zone (SEZ) in Gujarat, which is estimated to cost about Rs 12,000-15,000 crore.

Mukesh Ambani, chairman and managing director of RIL, said at the Gujarat Global Investors' Summit here on Wednesday that an all-weather port and the SEZ would be set up in either Pipavav or Dahej, depending on the approval from the government of Gujarat for land acquisition.

State government sources said a decision on the location would be taken within a month. RIL is expected to initiate construction activities through EPC contract procedures after that.

"Reliance has been working with the Gujarat government for three major initiatives, including the port-based SEZ," Ambani said at the summit.

Though Ambani refused to divulge the investment size, D Rajagopalan, principal secretary to the government, said, "The investment for the SEZ would not be less than Rs 12,000 crore and it may go up to Rs 15,000 crore. Also, the government has in-principle approved the project."

Rajagopalan added, "Reliance has been assured that there will no red-tape in the process as the chief minister is directly handling the case."

Reliance had already outlined an investment of Rs 50,000 crore for the state, which includes a textile mill at Naroda in Ahmedabad, yarn facilities at Hazira near Surat and the refinery at Vadinar in Jamnagar district.

A source close to Mukesh Ambani said, "The chairman has a preference for any location at Pipavav or Dahej as both are humming with industrial activity. We are not planning to set it up at Jamnagar where we already have a refinery. The SEZ is also expected to function as a chemical park and work on the project is expected to gain momentum once we get the approval from the government for land acquisition and also a formal nod from the Centre."

In Dahej, where Petronet LNG has a functional terminal and is building an all-weather port along with the Adanis, Reliance already owns the country's only exclusive chemical handling port, run by Gujarat Chemical Port Terminal Company.

"But the preferred location would be Pipavav where a LNG terminal is expected to be set up along with a mega power plant by NTPC India. At Dahej, Oil and Natural Gas Corporation has a plan to set up a SEZ, which may be a competitive set-up for Reliance. However, a final decision on the location would be mutually decided upon by Reliance and the state government," said the source.

The Nikhil Gandhi-promoted Sea King Infrastructure has an all-weather port at Pipavav and Reliance is aiming at setting up a port with at least 12 berths to handle cargo, a facility only available at Kandla Port in Gujarat and other four ports in the country.