Bharat Forge, Maharashtra government sign MoU to set up a multi-product SEZ in Pune

Our Corporate Bureau
24 August 2006

Bharat Forge Ltd (BFL) has signed a Memorandum of Understanding (MoU) with the state government of Maharashtra to jointly develop a multi-product special economic zone (SEZ) in the Khed taluka of Pune.

V Jairath, secretary (industries) and BN Kalyani, chairman and managing director, BFL, signed the MoU. Present on the signing ceremony were Maharashtra chief minister Vilasrao Deshmukh, industries minister Ashok Chavan and state government officials.

The SEZ is expected to attract investments of about Rs 25,000 crore and generate 120,000 new employment opportunities. The project has received in-principle approval from the board of approval of the union ministry of commerce.

Speaking on the occasion Deshmukh said, "I am very happy that Bharat Forge and MIDC have tied up to jointly develop a special economic zone in Pune District. I am confident that MIDC's long experience in setting up industrial estates coupled with BFL's established track record as a global manufacturing company will result in a world-class project that would attract large investments in the state, create huge employment opportunities for our people and bring immense prosperity in the region."

The project will be implemented through a special purpose vehicle (SPV) to be jointly promoted by the state government, the Kalyani Group and the Maharashtra Industrial Development Corporation (MIDC) in which the two promoters would hold up to 74 per cent and 26 per cent of the equity capital respectively. Land acquisition and other project related activities are expected to commence shortly.

According to Chavan the state government had resolved to maintain the primacy of the state as the country's most industrialised state. He said, "The BFL-MIDC tie-up is an excellent example of a public-private partnership that is aimed at creating state-of-the-art infrastructure and facilities for industrial development. Our government is determined to consolidate Maharashtra's position as the number one industrial state in the country."