GMR Infrastructure buys 51% in Kakinada SEZ
Published: Saturday, Dec 25, 2010, 2:35 IST
By K V Ramana | Place: Mumbai | Agency: DNA
GMR Infrastructure will kickstart the development of a port-based multi-product special economic zone at Kakinada in Andhra Pradesh, after entering into a share subscription and shareholders agreement for acquiring 51% stake in Kakinada SEZ Pvt Ltd on Friday.
The value of the transaction is not known, but people tracking the development said it would be “significant”.
The SEZ at Kakinada has been a non-starter for a few years now, owing to a variety of litigations including the one over ONGC’s decision to pull out of the SEZ.
Initially, Kakinada Sea Ports, ONGC and IL&FS formed an SPV to promote the SEZ with the grand plans of focusing on the petroleum and refinery sector with an overall investment potential of about Rs25,000 crore.
ONGC was keen on setting up a refinery at the SEZ and also other ancillaries since the SEZ is in the proposed petroleum, chemicals and petrochemicals investment region (PCPIR) extending up to Visakhapatnam.
“The broad design of the project has not changed. There would be minor tinkering here and there. The project had some issues earlier and now all that has been cleared. The full scale works on developing the project would begin as early as possible,” K V Rao, the managing director of Kakinada SEZ, told DNA.
However, he has not provided the financials of the project.
“The details are being worked out. We will be able to come out with the financial details in a week’s time,” a GMR official said.
According to details available with government sources, the project is coming up in about 8,321 acres and several companies have already come forward to set up their units in the SEZ.
“This is a multi product SEZ. The master plan is ready and it would also have a captive port,” Rao said.
However, sources in the SEZ development sector said that the project is still not completely out of trouble.
“There have been issues about conversion of agriculture land into non-agriculture purposes. The state government is keen on exempting the project from the agriculture related norms. But, it is going to be a tedious process. Though it is not impossible for GMR to develop the SEZ, it is not going to be easy as well,” a source said.
Well there are issues with kakinada SEZ, coz most of the lands in kakinada SEZ area are fertile lands.
Let me tell some facts about the scams happened with kakinada SEZ.
Initially the land was acquired by govt from the villagers for very low price 2-3 lacs per acre, threatening them using the land acts, also offering jobs to their family members in the GOVT refinery and handed over to the kakinada SEZ.
Later these KSPL assholes offered the same land to ONGC for 30-40 lakhs per acre for setting up the refinery. ONGC dropped their plan of setting up the refinery. Similarly many other investments were dropped down because of this extreme prices and protests from farmers.
Now the farmers are protesting for their land back.
This scam done by one of our Guntur based industrialist Mr.K.V Rao, chairman of KSPL (I strongly believe these money mongers&rogues are more in number from Krishna & Guntur area, ee lnjko gaallu ekkadiki velite akkada kampu chestaaru). Even some of the local politicians actively participated in this illegal real estate business for their commission (brokerage).
After selling the 51% stake to GMR, GMR entered and planning to setup a huge thermal plant, making kakinada another ramagundem/agnigundem.
I don't understand why people are so happy abt the upcoming heavy thermal projs in nellore area setup by reliance, these thermal plants should not be encouraged untill unless if they are at a safe distance.
Also this KSPL is on the mission of emptying the hopeisland sand and soil for the port purpose, (Everybody knows hopeisland is a natural barrier to kakinada city)throwing kakinada city into danger zone.
Unlike visakhapatnam, kakinada is a small city and moreover a delta, which is very sensitive to heavy industrializations.
This rogue K.V.Rao used his complete influence and used all ways to get sanctions from AP GOVT, to get work done without following proper norms.
Infact Kakinada is no more a pensioner's paradise, after the heavy industrialization. Now it's going to be worse, if projs took up shape at the cost of local residents health and life.