Phase I of corridor is expected to be ready by March next: Banga
Mangalore Special Economic Zone Limited (MSEZL), a notified sector-specific petrochemical SEZ in Karnataka, is setting up a 10-km direct pipeline-cum-road corridor connecting MSEZL units to the New Mangalore Port, said a press release issued on Monday by Rajiv Banga, MD and CEO, MSEZL.
Mr. Banga announced this at a seminar on “SEZ Opportunities for Petrochemicals in Karnataka” at the Global Investors Meet 2012 in Bangalore on Thursday, said the release. Mr. Banga said: “MSEZ is creating abundant water infrastructure by setting up two barrages each across the Netravathi and Gurupur rivers adjoining Mangalore and a pipeline system of over 38 km. The corridor would not only save cost and time for the petrochemical units, but also take pressure off infrastructure. Phase I of the corridor development is expected to be completed by March 2013.”
A cluster approach could best develop the sector as it would enable cost competitiveness at a global scale through functional and co-locational synergies. The MSEZL is modelled on a cluster approach because of which it had advantages of proximity to the port and feedstock, shared infrastructure, cost optimisation by leveraging scale, reduced area requirement, and improved environment management, Mr. Banga said. Proximity to various feedstock options meant a cost advantage of at least 6-7 per cent, which in the long term, could provide a huge headstart for a potential investor in the MSEZ, Mr. Banga said and added that a Central Effluent Treatment Plant (CETP) offered cluster benefits to units in MSEZ, which could also look forward to adequate power supply to be met by the State grid through Karnataka Power Transmission Corporation Limited, towards which a 220 KVA substation is also coming up next to the MSEZ.
MSEZL offers “ready to use” graded plots in various sizes also catering to the needs of the SME sector with normal items of infrastructure to do with water, power distribution, effluent handling, collection, and disposal system, Mr. Banga said. He added: “While all SEZ units would focus on exports, they can cater to the domestic market as well, subject to fulfilment of Net Foreign Exchange positive criteria over five years.