UTI Bank, RIL ink pact for SEZ in Maharashtra

The UTI Bank wants to ride high on the special economic zone (SEZ) bandwagon. It has joined hands with Reliance Industries Ltd (RIL) for the company's second SEZ in Maharashtra.

The proposed SEZ will be set up near Alibaug in Raigad district of Maharashtra. UTI Bank will structure and syndicate loans for the project, industry sources said.

The bank will also lead a consortium of banks that will fund the project. Most of the consortium banks will also establish offshore banking units (OBUs) in the SEZ.

"The project has received 70-80 per cent of the state government approvals. The remaining legal procedures would come through in three to four months," said the sources.

"The basic land acquisition will happen through a special purpose vehicle (SPV) route. More vendors will be involved in the project for providing facilities such as housing and other amenities," the sources said.

The bank is also in talks with Andhra Pradesh and Jharkhand governments to set up SEZs there. The lead taken by the bank will help it get opportunities to earn substantial fee-based income.

RIL is also implementing an SEZ project in the satellite city of Navi Mumbai. The other projects of RIL include the petrochemicals SEZ at Jamnagar and the Reliance Haryana SEZ in Haryana.

The policy for setting up of SEZ was in place in the year 2000, but a lot of action is seen among corporates only in recent times for taking up such projects.

The policy was framed with a view to provide an internationally competitive and hassle free environment for exports.

---

Banking on SEZ

UTI Bank will structure and syndicate loans for the project

The bank will also lead a consortium of banks that will fund the project

The bank is also in talks with Andhra Pradesh and Jharkhand governments to set up SEZs

The policy for setting up of SEZ was in place in the year 2000