Mumbai: Navi Mumbai-based special economic zones (SEZs), which received an in-principal approval in March 2000, can provide a big boost to exports, according to a consortium comprising Arthur Andersen, Crisil and Chesterton Meghraj Property Consultants.
Cidco, to prepare a 10-year business plan and manage global bids for selecting strategic investors, equity investors and anchor tenants, had appointed the consortium. Before appointing the Arthur Andersen-led consortium, Cidco convinced itself of the economic viability of the project through a techno-economic feasibility study conducted by Tata Economic Consultancy Services.
In its report submitted to the Maharashtra state government, the consortium has said that by 2007-08, exports from the proposed SEZs could reach $2.20 billion per year through 218 units, which are expected to be established by then. The total investment, by then, is envisaged at $1.90 billion (Rs 9,600 crore), including an FDI of $900 million.
The consortium has made the following observations in its report:
1) A special-purpose vehicle should be formed, which will have a strategic partner with management control. The strategic partner must enjoy global presence, with a capacity to pump in $150 million.
2) The proposed zones would be located close to the Jawaharlal Nehru Port, one of the most modern container port and also the one being developed as a hub port in Indias trade route. The location is also close to Mumbai, Indias financial and business capital.
3) Due to infrastructure facilities already put in place by Cidco, the proposed zones, which would occupy 50 sq kms on completion, would provide an excellent atmosphere for doing business.
4) Industries, which promise high-export and FDI potential, such as food processing and agriculture, garments, electronics, biotechnology and pharmaceuticals, would be targetted.
5) By 2014-15, the total number of units is expected to increase to 845, entailing an investment of $7.90 billion and an export potential of $8.70 billion. Cidco, which has been assigned the task of finding a strategic investor, will soon launch a marketing campaign, which will include roadshows in Europe, Japan, Southeast Asia and the US.
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