Skoda Export proposes Rs 10,000cr SEZ at Nizampatnam

Czechoslovakia's Skoda Export Company Limited is back after a gap of decades with a Rs 10,000 crore investment proposal, which involves setting up of a port-based industrial city project in the state.

The company is credited with the establishment of Navratnas like BHEL and Visakhapatnam Steel Plant by providing technology for the turbo generator set manufacturing facility and the steel-rolling mill in Andhra Pradesh.

Czechoslovakian Prime Minister Jiri Paroubek, who was in Hyderabad, met chief minister Y S Rajasekhara Reddy on Thursday. His short trip, in fact, amplified the significance of the investment proposed by Skoda Export at Nizampatnam, a minor port in Guntur district.

With the ground work for a possible MoU ready, Skoda Export Company's chairman and chief executive J Hubacek, who led the business delegation that accompanied the Czech premier, gave a presentation of the project.

The company proposes to establish a port-based multi-product special economic zone (SEZ) at Nizampatnam, which will include a urea plant, a 1,000-megawatt thermal power plant and an LNG terminal with the collaboration of a local oil company, according to Anish Reddy, director, Skoda (India) Private Limited.

Skoda Export Company acts as an EPC (engineer-procure-construct) contractor for investment capital projects like thermal and hydro power stations, chemical plants, metallurgy plants among others. Volkswagen's Skoda Auto division was originally with Skoda Export before it was sold to the German car major.

The company's selection of Nizampatnam port, which so far has no significant operations, is a result of an evolution of its initial proposal of setting up of a thermal power plant in the coal-rich Sattupally in Khammam district.

"Initially, I lobbied with the company just to get investments to my constituency. But later, I was convinced of its keenness to take up a much bigger project for the state and worked for its realisation," Jalagam Venkat Rao, Sattupally MLA, and son of former chief minister late Jalagam Vengala Rao, told Business Standard.

Anish Reddy termed the selection of Nizampatnam as a wise choice. "Nizampatnam is more economical for exporters of iron ore, granite, cement among other products," he said.

Once both the governments enter into a formal understanding, a detailed project report along with the possible local collaboration is expected to be finalised. According to Anish Reddy, the company wants to start the work on the project within a year's time.

The state government is expected to sign the MoU with Skoda Export Company sometime next month when the Czechoslovakia Republic's industries and commerce minister visits Hyderabad.

The state government is also keen to convince Tatra, the Czechoslovakian auto company, which produces a wide range of heavy-duty off-road trucks, to set up its unit in the state, Anish Reddy said.

BACK WITH A BANG

The company proposes to establish a port-based multi-product special economic zone (SEZ) at Nizampatnam, which will include a urea plant, a 1,000-megawatt thermal power plant and an LNG terminal

The selection of Nizampatnam port, which so far has no significant operations, is a result of an evolution of its initial proposal of setting up of a thermal power plant in the coal-rich Sattupally in Khammam district

Once both the governments enter into a formal understanding, a detailed project report along with the possible local collaboration is expected to be finalised

The state government is expected to sign the MoU with Skoda Export Company sometime next month when the Czechoslovakia Republic's industries and commerce minister visits Hyderabad