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3 more firms come to Indore

The combined investment in the SEZ to be Rs 330 crore

Shashikant Trivedi  |  Bhopal 

The Indore special economic zone has attracted three more investments""a Pune-based firm Parakh Agro Industries Ltd, Mahima Pure Spun, a unit of Mahima Fibres Pvt Ltd, and another from a Nasik-based firm Advanced Pharmacy.
The state government has issued both the letters of intension for investments. Parakh Agro Ind will make an investment in the SEZ for producing agro products like besan and wheat flour.
"The state apex committee for investment under the chairmanship of the state chief minister Babulal Gaur has cleared the company's proposal recently," a source in the state government told Business Standard.
The company will make an investment of Rs 60 crore in the project. Mahima Spun will set up a unit with 32,000 spindles with an investment of Rs 60 crore for cotton yarn production.
"The state government has allotted land to the company in principle," a source said. Advanced Pharmacy has submitted a letter of intention and has expressed interest to invest Rs 110 crore.
However the details about the products are not available.
Though the Indore SEZ is the first operational SEZ in India, the state government has yet to dilute its stake in the entity Indore SEZ Ltd. Moreover, the are facing problems of non-availability of racks for exports.
"There is only one Concor-run dry port at the Pithampur SEZ, which always runs short of racks. The state government has should put a pressure on the firm to reduce the monopoly tariff and should press the railway ministry for developing a railway siding in Pithampur," an industrialist from Pithampur SEZ told Business Standard, adding, "a cargo airport in Indore should also be developed so that could reduce the transportation cost alternatively, the state government can provide subsidy on exports from the dry port."
At present, exporting units have to bear additional expenses of transporting racks from Pithampur dry port to Ratlam Railway terminal.
Similarly a number of banks including Bank of Baroda, Punjab National Bank and other public sector banks are awaiting a clearance from Reserve Bank of India for setting up offshore units to offer loan in dollars.
The first phase of the SEZ has been allotted to more than 11 companies in an unorganised manner. Though officials of Madhya Pradesh Audyogik Kendra Vikas Nigam has said, "the second phase would be developed in a planned way," the industries will have to wait for state to sync with SEZ Bill.
Despite the SEZ Indore is offering a slew of sops "" prime among them "" the hire and fire policy, it has only two firms operational.
The infrastructure like roads, single window clearance at State government and a facilitation agency are still a distant dream for industries investing in the zone.
Growing big
  • The first phase of the SEZ has been allotted to more than 11 companies in an unorganised manner
  • The Parakh Agro Industries will make an investment in the SEZ for producing agro products like Besan and wheat flour, with an investment of Rs 60 crore
  • Mahima Spun will set up a unit with 32000 spindles with an investment of Rs 60 crore for cotton yarn production
  • Though the Indore SEZ is the first operational SEZ in the country, the state government has yet to dilute its stake in the entity

First Published: Fri, May 20 2005. 00:00 IST
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