The Hindu Business Line : Mundra SEZ hopes to bring rich NRIs back home

THE Gujarat-based Adani Group hopes to attract investments from Kutchhi NRIs in UAE and other countries to the special economic zone (SEZ) being developed by the group at Mundra.

Mr Sanjay Gupta, CEO - Infrastructure, Adani Group, said with the changes taking place in the global business environment, many NRIs are looking back home for investment opportunities.

The ending of the textile quota system and the easing of other global trade restrictions are expected to benefit India significantly. These positive developments will attract more foreign investments to India; Mundra SEZ is being developed to offer Indian and foreign investors world-class facilities to start business in their home State, he said.

Mr Gupta, who was in Dubai early this week, leading a study team to the free trade zones in Dubai and in the other emirates, said Mundra SEZ will be developed on the lines of the successful Jebel Ali Free Zone.

Mundra SEZ, covering an area of 130 square km, will be developed in phases. Adani Group proposes to invest about Rs 7,000 crore to develop basic infrastructure in the zone, Mr Gupta said.

A major advantage of Mundra SEZ is that it already has a well developed container terminal run by a leading global terminal operator, P&O Ports.

Mundra expects multinational companies too, besides NRIs, to set up shop in the zone, which promises to offer world-class facilities at globally competitive rates.

Mr Gupta, who had informal discussions with a select group of Indian businessmen in the UAE, said many of them are keen to come to India but were apprehensive of the Government policies and the rigid attitudes of the bureaucracy.

Initial response indicates investment interests in the zone in areas such as textiles, pharmaceuticals, chemicals, gem and jewellery.

The master plan of the Mundra SEZ is being prepared and the development work is expected to start in the next three months. Investors in the SEZ will be eligible for 100 per cent income-tax exemption for five years and 50 percent exemption for the next five years. There will be no restriction on Domestic Tariff Area (DTA) sales by SPZ units.