Centre's nod for Rs 7,300-cr port-based SEZ

The Centre has approved Kandla Port Trust's Rs 7,300-crore port-based SEZ in Gujarat. It is part of 44 SEZs approved by the government late last week.

The Board of Approvals (BoA) in the ministry of commerce gave formal clearance to 24 proposals and in-principal nod to 20 others. The commerce ministry also notified the list of activities related to social infrastructure permitted to be set up inside SEZs.

According to a release issued by KPT, Gujarat being an industrially developed state with increased potential for technology absorption and investment, the port will not only enjoy advantages of natural and strategic location and notification as SEZ but will also benefit from the synergetic interplay between different modules of the state as economic hub of the nation.

"In order to meet the global demands of trade and to provide concessional and cost-effective infrastructure to entrepreneurs, the port has embarked on development of a port-based special economic zone," said A Janardhana Rao, chairman, KPT, while speaking to Business Standard.

According to the release, the proposed SEZ will be set up on about 6094 hectares covering projects like Dry Cargo Berths (namely 13 to 16th), Outer Harbour Berthing Facilities off Tekra near Tuna for handling multifarious cargo generated from the proposed SEZ."

The proposed SEZ will form part of the wider integrated SEZ network of the state as it's likely to facilitate Container Freight Station, Packaging / Repackaging Units, Processing Units and allied infrastructure.

The SEZ will be an added facility for the state of Gujarat which is slowly and gradually emerging as an economic hub and consists of a number of economic and business operations like Ahmedabad International Airport and Surat based SEZ.

"The port has already appointed a renowned agency to prepare a detailed project report, which is expected very soon," said Janardhana Rao.

The benefits that accrue from the proposed SEZ are: direct or indirect tax benefits, duty free imports, exemption from central excise, 100% foreign direct investment in selected sectors, earnings in foreign exchange, repatriation of profits, etc.