The Hindu Business Line : NMPT gets nod to be equity partner in Mangalore SEZ

The Union Shipping Ministry has given `in-principle' approval for New Mangalore Port Trust's (NMPT) participation as an equity partner in the special purpose vehicle (SPV) formed for the implementation of SEZ project in Mangalore. The SPV— Mangalore SEZ Company Ltd — was formed on February 23.

The NMPT's participation in the SPV assumes significance as a major chunk of the SEZ activities will be associated with the port. In January this year, the board of NMPT took a decision to seek approval from the Union Shipping Ministry for the port's participation in the SPV.

Present stakeholders

At present, the Karnataka Industrial Areas Development Board (KIADB), Oil and Natural Gas Corporation Ltd, Infrastructure Leasing and Financial Services (IL&FS) Ltd and the Kanara Chamber of Commerce and Industry (KCCI) are the stakeholders in the Mangalore SEZ Company Ltd.

Mangalore SEZ is a mega project with two components - petrochemical and multi-product.

ONGC, through its subsidiary Mangalore Refinery and Petrochemicals Ltd, is planning to invest more than Rs 35,000 crore in the petrochemical component of the SEZ.

Decision welcomed

Welcoming the Shipping Ministry's move, Mr A. Srinivasa Rao, Director of the Mangalore SEZ Company Ltd and President of the KCCI, told Business Line that this would help boost the activities of the port.