SAIL, IL&FS Infrastructure Development Corporation to float special economic zone for steel

Executive Director (Corporate Planning), SAIL Mr A.K. Jain (left) and Mr D.K. Mittal, CMD, IIDC, signing copies of the MoU

Steel Authority of India Limited (SAIL) has signed a memorandum of understanding (MoU) with IL&FS Infrastructure Development Corporation (IIDC), to float a special purpose vehicle (SPV) to develop, operate and maintain a steel sector special economic zone (SEZ) at Salem in Tamil Nadu.

IIDC is a wholly-owned subsidiary company of IL&FS (Infrastructure Leasing & Financial Services Limited), and is engaged in advisory and project development activities across diverse sectors. It specialises in providing integrated and comprehensive professional services towards development of infrastructure projects, from conceptualisation to implementation.

While SAIL will provide land, IIDC will provide advisory and other related services for the SEZ. Both companies will hold equity shares in equal proportion in the proposed SPV, which SAI says would be formed within one month to initiate the process of development of the SEZ.

The application for approval of the SEZ shall be submitted shortly to the gvernment of India. It is likely to be considered by the board of approvals of the ministry of commerce in the month of October.