Narendra Modi govt gives green nod to Adani Ports for Mundra SEZ

Written by PTI | New Delhi | Updated: Jul 18 2014, 01:21am hrs
Gautam Adani Mumdra SezAdani owns and operates five ports - Mundra, Dahej, Hazira, Goa and Visakhapatnam. (Reuters)
Gautam Adani-led Adani Ports and Special Economic Zone today said it has received environment and other nods from the PM Narendra Modi-led NDA government for its 8,481 hectares special economic zone, a move that will pave way for setting up facilities like desalination and effluent treatment plants besides boosting exports.

"APSEZ, part of the Adani Group... has received the environment and coastal regulation zone clearance from the Union Ministry for Environment and Forests, for its 8,481 hectares special economic zone in Mundra," the company said in a statement.

The clearance will now allow APSEZ, which operates India's only port-based SEZ, to set up a mega desalination plant, an effluent treatment plant and intake of sea water, all of which constitute primary infrastructure to be provided for companies setting up business units in the special economic zone.

"The grant of the environmental clearance to Mundra SEZ by MoEF will encourage investment in SEZ and the development is expected to be at a much faster pace as it provides seamless connectivity through sea, rail and road," said Gautam Adani, Chairman, Adani Group.

Special Economic Zones have been promoted from the point of view of attracting FDI as well as to promote export led growth.

Industrial units in the SEZ benefit from complete waiver on import duty/excise duty/service tax for capital goods or raw materials procured.

The statement said the SEZ will host industries which will generate additional cargo volumes for the Mundra Port.

The SEZ includes the Mundra port which handles cargo volumes of 100 million tonnes (MT) per annum, the company said.

It is located close to major towns of Bhuj and Gandhidham in Gujarat.

"With the grant of environmental and CRZ clearance, all issues related to the same now stand resolved," the company said.

Adani Port shares closed at Rs 281.10 apiece, up 6.82 per cent from the previous close on the BSE.

Adani owns and operates five ports - Mundra, Dahej, Hazira, Goa and Visakhapatnam.

Adani recently acquired Dhamra Port in Odisha, thereby marking its entry into the east coast of the country. It is also setting up ports in Tuna Tekra, Mormugao, Kandla and Ennore.

India's Adani gets green light for Mundra expansion

(Reuters) India's new government has given Adani Ports and Special Economic Zone the green light to develop an 8,481 hectare coastal plot of land in western India, clearing the way for the group to build a huge desalination plant, Adani said on Wednesday.

The clearance process had stalled under India's previous government, which lost power to Prime Minister Narendra Modi in May, and Adani has waited several years to get the go-ahead.

Adani, part of billionaire Gautam Adani's conglomerate, said in a statement the environment ministry had granted environment and coastal regulation zone clearance for its Mundra Special Economic Zone, a huge industrial hub where it also plans to build an effluent treatment plant.

Since investing billions of dollars into an area with large swathes of marshy wasteland, Adani has transformed Mundra into an industrial zone hosting India's largest commercial port and the country's largest privately-owned power plant.

The rapid growth of Mundra, a once-remote coastal town on the Gulf of Kutch in Gujarat, has prompted some opponents to say the local government, then headed by Modi, favoured Adani with cheap land. Adani denies he has been granted any undue favours.

Adani's rapid ascent to the top tier of Indian business is often associated with the rise of Modi. Shares in listed Adani Enterprises have surged almost 70 percent this year, largely in the run-up to Modi's election victory in May.

Adani Ports' stock closed up 6.82 percent on Wednesday, outpacing a 1.27 percent rise in the benchmark.

Long pushed by India as a way to encourage foreign direct investment and grow exports, special economic zones are exempt from certain labour laws, as well import and excise duties.