Kandla Port Based Special Economic Zone (KPBSEZ), the country’s first port-based SEZ to come up near Kandla in 5,000 hectares has hit a roadblock.
After over two and half years of being notified in October 2006, KASEZ is yet start development work for the project.
The Ministry of Commerce has dashed off a letter to the developer in January 2009 that its SEZ status would be terminated if it does not start necessary development work in six months time, said sources close to the development. The developer has chalked out project cost of Rs 7,300 crore for development of the zone.
When contacted a senior official of Kandla SEZ (KASEZ), the nodal agency for all SEZs in Gujarat, said that a meeting was held with KPBSEZ officials in March wherein the developer had sought two months extension for submitting the land related documents. However there has been some more delay due to elections, he said.
The official said that they would wait till the elections get over and may give some more time to submit the documents before arriving at a decision.
Incidentally, KPBSEZ is the country’s first SEZ wherein the developer had land in possession and it was not to acquire any additional land for the SEZ. Kandla Port Trust which owns KPBSEZ has over 2.44 lakh acres of land.
Sources in KPT meanwhile said that Kerala based KITCO are the official consultants for the SEZ and the final feasibility report is yet to be submitted by them. When contacted a spokesperson of KPT refused to comment on the issue.
KPBSEZ has been aimed to act as model port based SEZ for the country and so far it has attracted investment interest to the tune of Rs 50,000 crore from various players, sources said.
H K Mittal owned Mercator Lines has shown interest for setting up a mega shipyard in KPBSEZ for an investment of Rs 10,000 crore. The company has sought 1000 hectares of land for the project, sources said.
Players like Suzlon, Jindal group and Welspun have been exploring the area for setting up their manufacturing units, sources said.
“Earlier KPBSEZ was to come up in 6,094 hectares however due to the ceiling they decided reduced it to 5,000 hectares,” said sources close to the development.
The earlier proposed SEZ was to be set up at three different locations which included 3600 hectares at the rear of the existing cargo berth complex at Kandla, 94 hectares behind the upcoming dry cargo berths No.13 to 16 at Kandla and 2400 hectares at Tuna. All these three PBSEZ locations were to be inter-connected with contiguous corridor.
