Videocon to be minority shareholder in NMSEZ

In a related development, representatives from IFC Washington and ADB Manila today met senior state secretariat officials on the MahaMumbai SEZ (MMSEZ) project to which they have in principle committed a funding of $75 million each.

Videocon group chairman Venugopal Dhoot said: "We have not altogether exited the NMSEZ project. Since the licence for the project was issued in our name, we'll have the right to appoint the chairman of the special purpose vehicle and one or two directors on the board. Besides this, we will have a minority equity in the project. The active management control will be vested with SKIL."

After the Videocon group decided to scale down their involvement in the NMSEZ, SKIL approached the City and Industrial Development Corporation (CIDCO), which in turn sought the no-objection from the state government-appointed, high powered committee for the remaining promoters of the project, which got the approval, a SKIL spokesperson said.

A spokesperson for SKIL said: "Of the two mega SEZ projects we are implementing, the NMSEZ was originally christened as the Videocon consortium which subsequently withdrew (from active participation) through the mutual consent received from the Maharashtra government set up high-powered committee."

Videocon's withdrawal was allowed as neither their capability nor their strength were considered as a criterion to select the consortium. The other members of the consortium continue to be the same."

SKIL has already received approval for Rs 2,000 crore in terms of debt and equity to finance the MMSEZ and NMSEZ, as one comprehensive project.

SKIL's other co-investors include the Hiranandani group, Avinash Bhonsale groups and Parsons Brinckerhoff of the US.

The consortium has also attracted investors like PSA Singapore, Maersk Sealand""Denmark, AMP, Australia, New York Life Insurance, US, CDC of the UK, Industrial Development Bank of India and the Union ministry of railways.

"We (SKIL) are in all preparedness to commence the construction work for the Mumbai Integrated SEZ project (NMSEZ and MMSEZ) as soon as the enactment of the SEZ Act is effected by the Union government during the ongoing parliamentary session in New Delhi."

The Rs 4, 860 crore MISEZ project (cost of the first phase of development) that has integrated the Rs 3,909 crore Mahamumbai SEZ project and the Rs 951 crore (also first phase costs) Navi Mumbai SEZ project, is proposed to be financed by equity capital of Rs 1,504 crore, lease deposits and internal accruals of Rs 349 crore and a debt of Rs 3,007 crore.

According to informed sources, the financial closure is underway with more than Rs 2,000 crore already tied up. "The lenders include IDBI (Rs 500 crore), IDFC and HDFC (Rs 450 crore), Housing & Urban Development Corporation (Rs 250 crore), Infrastructure Leasing & Financial Services (Rs 150 crore). International lenders of the project include the International Finance Corporation, Washington, and Asian Development Bank (ADB), Manila which have also agreed in-principle to provide debt/equity funding of $75 million each," the source added.