The Hindu Business Line : Centre gives more time for Mangalore coastal SEZ project

THE Union Government has extended the `in-principle' approval given to the Kanara Chamber of Commerce and Industry (KCCI) for establishing a coastal special economic zone (SEZ) in Mangalore till August 31.

A press release by the KCCI President, Mr A. Srinivasa Rao, said, "Based on the fact that preliminary initiatives are already under way and on the strength of the recommendation of the Karnataka Government, the Department of Commerce under the Union Ministry of Commerce and Industry was pleased to grant further extension of `in-principle' approval for the coastal SEZ project for another six months from February 9, 2004 up to August 31, 2005."

This has enthused the promoters to intensify their efforts towards fulfilment of the commitments stipulated in the preliminary provisional approval for setting up the coastal SEZ in Mangalore, he added.

The earlier approval for the coastal SEZ was valid till February 8, 2005.

It may be mentioned here that the Union Government — in a letter dated August 8, 2003 — had granted `in-principle' approval to KCCI to set up an SEZ at Baikampady in Mangalore. The validity of this approval was initially fixed up to August 7, 2004, to fulfil certain commitments. As the commitments could not be fulfilled within the stipulated period, KCCI sought an extension of provisional approval till February 8, 2005.

During the period between August 7, 2004 and February 8, 2005, steps were initiated for the implementation of the project. The Oil and Natural Gas commission (ONGC) showed interest in locating several mega investment proposals in the petrochemical sector at coastal SEZ. It also came forward to anchor the implementation of coastal SEZ. Added to this, the New Mangalore Port Trust (NMPT) also showed interest in partnering in the joint development of SEZ.

As it seemed that the proposed SEZ will have three component sectors - areas forming part of NMPT for port-based activities, areas surrounding the Mangalore Refinery and Petrochemicals Ltd (MRPL) for petrochemical and aromatic complex, and areas in Baikampady for locating general-purpose industries with appropriate interconnectivity - a joint meeting comprising ONGC/MRPL, KCCI, NMPT, and the State Government officials was held in Bangalore on December 22, 2004. Following this, the Karnataka Government requested ONGC/MRPL, KCCI and NMPT to work together for the coastal SEZ.

On January 24, 2005, the Karnataka Government addressed further actions on steps to be taken for fulfilment of commitments to the Union Government. Apart from this, ONGC/MRPL also highlighted the steps taken towards project implementation in its letter dated January 24, 2005.

This paved the way for the Centre to extend `in-principle' approval to KCCI for another six months.

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