L&T, Gammon Among 9 Bidders To Submit EoIs For Indore SEZ

Mumbai, Nov 5: | Updated: Nov 6 2003, 05:30am hrs
Larsen and Toubro (L&T) and Gammon India, along with Zoom Developers, are among the nine companies to submit expressions of interest (EoIs) to be the strategic partner for the second phase of Indore special economic zone (SEZ). The strategic partner will design, finance, build/develop, market, operate and maintain the SEZ project.

Zoom Developers has joined hands with the Singapore-based Jurong Town Corporation International (JTCI) to submit their EoI.

NJ Sheth, chief executive officer, Tata Economic Consultancy Services (TECS), said, The project cost is estimated at around Rs 800 crore including investments in infrastructure alone calling for Rs 500 crore. The internal rate of return (IRR) is worked out at around 20 per cent.

Mr Sheth was speaking on the sidelines of a seminar on SEZ organised by the Bombay Chamber of Commerce and Industry, here on Wednesday.

Tata Economic Consultancy Services is advising Madhya Pradesh Audyogik Kendra Vikas Nigam (Indore) Ltd. (MPAKVN) the sponsors of the SEZ in the selection of the strategic partner for the second phase. The two-stage selection process is likely to be completed in six months and the second phase should be operational in 2-3 years, Mr Sheth said.

The special purpose company (SPC), under the name and style of SEZ Indore Ltd, has been incorporated for the purpose. The strategic partner selected through the competitive bidding process will be inducted as the majority and strategic partner and can hold upto a maximum of 74 per cent stake in SEZ Indore Ltd.

The area under phase-II for development is around 900 hectares while phase-I was of around 150 hectares. Apart from Indore SEZ, Navi Mumbai SEZ and Kakinada SEZ are in the process of privatisation from the ownerships of government agencies.

Indore SEZ apart from poor sea port connectivity due to it being land-locked, is also hampered by the absence of a substantive manufacturing and industrial base in the hinterland that could have strengthened the value chain. It, however, has a complete regulatory regime in place and the completion of the phase-I offers ready platform for the private developer to walk in, Mr Sheth said.