The Hindu Business Line : GVK poised to complete land buy for TN multi-product SEZ

Hyderabad, April 7 GVK Power and Infrastructure Ltd is poised to complete the land acquisition of the company’s first multi-product special economic zone (SEZ) planned in Tamil Nadu.

The company is gearing up to bid for NELP VII (New Exploration Licensing Policy) and is set to commission two of its gas-based power plants by July. It is also awaiting the outcome of bids for two major metro rail projects in Hyderabad and Mumbai.

The Chief Financial Officer of GVK, Mr A. Issac George, told Business Line that the company has acquired about 2,400 acres of land directly from the owners and expects to complete the acquisition of the balance 600 acres within a month.

“Once this is concluded, we would then take this up for approval with the Central Government,” he explained.

Including ‘red’ segment

“This multi-product SEZs will be home for not just textile and leather industries but also some of the other industries which are classified as polluting “red” ones. However, by setting up a modern effluent treatment plant, we would be able to fully negate the impact of toxic substances,” he said.

“Located at Perambalur, about 225 km from Chennai and about 75 km from Tiruchi, this SEZ would get water supply from the Cauvery. We expect to spend about Rs100 crore or there about for land acquisition. TIDCO (Tamil Nadu Industrial Development Corporation, a State Government undertaking) is likely to take about 11 per cent stake in the proposed SEZ,” he explained.

GVK has engaged Mahindra Consultancy, which has experience in working with another SEZ in Tamil Nadu.

GVK has partnered with a major global company in the oil and gas exploration business and is now gearing up to bid for about 6-7 oil and gas blocks that are up for bidding under the NELP. The Government proposes to offer 57 blocks, some in deep sea and the rest in shallow waters.

“While I would not like to divulge the consortium partner for oil block bids, we are keen to be part of this exciting phase of oil industry growth,” he said.

POWER PROJECTS

The company is in the process of commissioning two more gas-based projects in Andhra Pradesh and expects to synchronise them by July 2008 in time to harness the gas being evacuated from the Krishna-Godavari basin by Reliance Industries Ltd.

Together, Jegurupadu Stage II and Gauthami power would have combined generation capacity of about 684 MW, he said.

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