November 22, 2008

Mangalore port stake in SEZ

BS reported that New Mangalore Port Trust has evinced interest in picking up around 10% stake in Mangalore Special Economic Zone Limited in an effort to become a partner in the project.

MSEZ Limited has an equity capital of INR 50 crore. While, ONGC has 26% stake in the project, KIADB has 23%, IL&FS holds 49% and the remaining 2% is held by KCCI.

Mr ISN Prasad MD & CEO of MSEZ Limited said that "NMPT approached us recently and expressed interest in picking up stake in MSEZ. Among the existing equity holders, KIADB, which holds 23% stake, has agreed to divest 10% of their stake to NMPT. While, there is no objection by other equity holders in the company, NMPT needs to take an approval from the Union ministry of shipping."

He said NMPT has already received an in principle approval by the union ministry of shipping. However, the ministry has asked NMPT to furnish the details of the project and the exact involvement of NMPT in the SEZ before giving the final approval. He added that "Once the ministry gives its final consent, the proposal will be placed before the Union cabinet for further approval. The whole exercise is expected to be completed very soon."

MSEZ is a special purpose vehicle floated by Oil & Natural Gas Corporation, Karnataka Industrial Area Development Board, Infrastructure Leasing & Financial Services and Kanara Chamber of Commerce & Industry to develop a multi product SEZ at Mangalore.

Mangalore SEZ project is the first such project being developed on the coastline of Karnataka, wherein it is expected that at least INR 50,000 crore will be invested in the next 5 years. The project is being developed in an area of 4,000 acres, of which already 1,900 acres have been acquired. Presently, 450 acres land has been allotted to Mangalore Petrochemicals Limited. Another 85 acres land has been given to Indian Strategic Petroleum Reserves for building an underground reservoir for storing crude oil at an investment of INR 1,500 crore.