Jabel Ali to develop APSEZ

The Andhra Pradesh government has identified Dubai's Jabel Ali Port as the developer for the Andhra Pradesh Special Economic Zone (APSEZ), proposed to be developed near Visakhapatnam in a 9,200-acre area.

Announcing this here, chief minister Y S Rajasekhara Reddy, who returned to Hyderabad today from a three-nation tour, including Dubai, said that the port management has agreed to the proposal.

The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has already acquired over 7,000 acres of land for the proposed SEZ project, which was originally estimated to cost about Rs 2,200 crore.

The project was proposed on a public-private partnership format, in which the strategic partners will have to invest two-third of the total cost. In December 2003, APIIC tried to rope in a strategic private partner but met with little success as none responded to its global tenders.

"We already have 7,000 acres of land. But it is insufficient and the government is planning to acquire more land for the SEZ to be developed along the lines of Dubai's Jabel Ali Free Zone Area (JAFZA)," Reddy said.

According to the chief minister, Jabel Ali Port is also taking part in the proposed development of Gangavarm Port near Vizag under private sector. Financial closure of this port is due this month.

The chief minister also disclosed that the government of Dubai has agreed to participate in the development of the Knowledge Corridor project and also the Outer Ring-road Project in Hyderabad.

The state government has invited Israeli company, Tahal, which is into water conservation, to develop the concept for a water recycling project in Hyderabad to be set up under private sector.

"We have asked the company to study the feasibility of setting up a similar waste water recycling projects in other municipalities in the state as well," he told the media.

Reddy, who also met the chairman of RAK Ceramics in Dubai, said that the company has agreed to expand its project, currently under construction near Peddapuram in Guntur district in the state, by investing another Rs 60 crore to produce sanitaryware products apart from tiles manufacturing. The company is currently investing around Rs 200 crore in the manufacturing facility.