Hyderabad: The flagship of city-based GVK group, GVK Power and Infrastructure Ltd, proposes to build a seaport close to its multi-product special economic zone, or SEZ, coming up near Perambalur in Tamil Nadu.
“The idea is to meet import and export needs of the industrial units setting up their facilities in the proposed multi-product SEZ,” said GVK group chairman G.V. Krishna Reddy.
The Tamil Nadu government had offered help in identifying land for the seaport, Reddy said. “We have approached the government and the state port authorities have shown us various locations for the proposed seaport,” he said.
“We have hired a consultancy firm to evaluate the opportunities on whether to set up a major, medium, or minor port. The process is expected to take some time.”
India’s 7,517km coastline has 12 big and 187 smaller ports.
The group is developing the 3,000-acre SEZ in alliance with state-owned Tamil Nadu Industrial Development Corp. Ltd, or Tidco. “We have already acquired 2,500 acres of land and should be completing the entire land acquisition for the SEZ in a month or so,” Reddy said.
SEZ is expected to attract investments worth Rs5,000 crore in seven years, and will host industries that include textiles, garments, leather, engineering goods, pharmaceuticals, power, IT and information technology enabled services, iron and steel, fertilizers, chemicals, petrochemicals, floriculture, horticulture, and electronics and communication. The company expects the SEZ to earn around Rs6,000 crore a year from exports.
Reddy also said GVK is looking at constructing a power plant close to the seaport to meet electricity needs of the SEZ units. The seaport would help as the power plant would run on imported coal. The company is scouting for coal mines abroad and expects to soon firm up a deal.
“We are planning a merchant power project near the seaport, which would cater to the needs of industrial customers not only in our SEZ, but also outside it,” said Reddy, adding the capacity of the plant will be between 1,000MW and 2,000MW, depending on how much coal the company can import from its overseas acquisition.
“Seaport and power project are key added advantages we can offer to the industrial units coming up in our SEZ.”
Last year, GVK had bid for setting up 10 small and medium seaports in Gujarat and has been shortlisted as the lowest bidder by the state government to build a multipurpose port at Dahej. “The evaluation process for these mini and medium ports in Gujarat is still going on,” said GVK’s chief financial officer Issac George.