SAIL, IL&FS Infrastructure Development Corporation to float special economic zone for steel
17 Sep 2007
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| Executive Director (Corporate Planning), SAIL Mr A.K. Jain (left) and Mr D.K. Mittal, CMD, IIDC, signing copies of the MoU |
Steel Authority of India Limited (SAIL) has signed a memorandum of understanding (MoU) with IL&FS Infrastructure Development Corporation (IIDC), to float a special purpose vehicle (SPV) to develop, operate and maintain a steel sector special economic zone (SEZ) at Salem in Tamil Nadu.
IIDC is a wholly-owned subsidiary company of IL&FS (Infrastructure Leasing & Financial Services Limited), and is engaged in advisory and project development activities across diverse sectors. It specialises in providing integrated and comprehensive professional services towards development of infrastructure projects, from conceptualisation to implementation.
While SAIL will provide land, IIDC will provide advisory and other related services for the SEZ. Both companies will hold equity shares in equal proportion in the proposed SPV, which SAI says would be formed within one month to initiate the process of development of the SEZ.
The application for approval of the SEZ shall be submitted shortly to the gvernment of India. It is likely to be considered by the board of approvals of the ministry of commerce in the month of October.
SAIL
would gain from the proposed venture in the form of likelihood of assured demand
for a part of SSP''s stainless steel production, which is going to increase significantly
after commissioning of planned facilities under SAIL''s growth plan. In addition,
SAIL would receive the benefits allowed to an SEZ developer in the form of land
lease rentals, tax concessions and earnings from provision of services to the
SEZ.
