_and--D.K_M.jpg) |
| 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.
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