The Kakinada special economic zone (KSEZ) will soon have an exclusive Rs 2,000-crore deep-water port for importing and exporting petroleum, biotech, agricultural and other products.
ONGC, one of the promoters of KSEZ, will also have a single buoy mooring (SBM) port facility within the proposed port. The SBM model links port and refinery with two pipelines, one to import crude and the other to pump the refined fuel to exporting ships.
The deep-water port will be completed in two stages. KSEZ has already received an in-principle approval from the Centre to set up a port-based special economic zone at Kakinada. Following the nod, a special purpose vehicle (SPV) - Kakinada SEZ (KSEZ) - was incorporated to implement the project. KSPL, ONGC and IL&FS of Delhi are the stakeholders in the SPV. “We have got the necessary approvals to construct the port and have initiated the ground work to start construction.
Around Rs 1,250 crore will be spent on the first phase of the project that is expected to be completed in a year’s time. The remaining Rs 750 crore will go into the second phase of the three-year project. The port facility will be used by companies that set up their units in the 10,500-acre KSEZ,” Kakinada SEZ director KV Rao told ET.
Kakinada already has an operative port, which is also being expanded in view of the huge industrial activity in this region. Out of the 10,500 acres, around 2,500 acres have been allotted to ONGC for its Kakinada Refinery and Petrochemicals plant with an annual capacity of 1.5 lakh tonnes. ONGC plans to adopt a SBM port model.
This will be on the lines of the Mundra SEZ in Gujarat, which is five kilometres away from the port. The proposed port will help ONGC save on carriage charges of crude and refined goods as the proposed refinery is 15 km away from the shore. KSEZ authorities have recently submitted a report to the government on the allotment of land to companies investing in the SEZ.
According to sources, the list of companies include TCG Refinery Company ofMauritius (2,500 acres), SDE Engineers (1,000 acres), ETA Star Marsol, Tata Power (600 acres), Suzlon Energy (350 acres), RS Energy (200 acres), Asrit Agro Products (200 acres), Kakinada Fertilisers (200 acres), KSR Agencies Food Park (150 acres) Nicholas Piramal (100 acres) and other companies (350 acres).
Kakinada Special Economic Zone (KSEZ) has signed a memorandum of understanding (MoU) with Naturol Bio-Energy for setting up the first eco-friendly bio-diesel plant in Kakinada SEZ. The 300 TPD integrated biodiesel plant will be set up in the port town of Kakinada at an estimated cost of Rs.139.50 crore by Naturol Bio-Energy India in JV with Energea GmbH, Austria. KSEZ is a port based special economic zone project in Kakinada promoted by Kakinada Sea Ports, ONGC and IL & FS.
KSEZ has received an in-principle approval from the government of India for setting up of a 'port-based special economic zone' at Kakinada. For this a 'special purpose vehicle' (SPV), Kakinada SEZ Pvt Ltd (KSEZ) was incorporated. The project will be implemented by KSPL, ONGC and IL & FS as promoters.
The investment for developing infrastructure in 4000 acres of land and augmenting external infrastructure for KSEZ would be Rs 2000 crores.
This investment would be other than the industries located in SEZ. KSEZ made progress in various fronts like land, DPR preparation, assessing existing infrastructure, and assessing the facilities required.
"KSEZ expects the refinery and biodiesel plant investments itself in the SEZ would be Rs4,000 crore. More industries are evincing interest to locate their units in SEZ. We anticipate an investment Rs10,000 crores in the first phase by various industries in SEZ mainly petrochemicals, gas-based industries, ceramic units, power plant and other export-oriented industries. The SEZ once completed will change the entire economic scenario of East Godavari District which is agriculturally rich" M S Murthy, chief operating officer, KSEZ said.
"We are pleased to sign the MoU with Kakinada SEZ. SEZ will make the implementation process more efficient and timely as SEZ will grow to become a fully developed operating port that will have solid infrastructure facilities to support accomplishment our integrated bio-diesel project," Bhaskar Chalasani, managing director, Naturol Bio-Energy said.
KSEZ is engaging IL & FS to undertake developmental activities for next 12 months. ONGC is also proposing to set up a 5 MMTPA refinery in the SEZ. GoAP has been extending their co-operation and nominated TR&B department for coordinating the activities on behalf of GoAP. A separate MOU is under finalization between GoAP, IL&FS and KSPL for establishing the refinery.
KESZ expects a bio-diesel plant to be set up at this SEZ as it would attract other such units. For Naturol all infrastructure will be the readily available and responsibility of SEZ so that it can concentrate on implementation of the project.
Naturol Bio-Energy also signed an MoU with Energea GmbH, Austria in the presence of Austrian Trade Commissioner, Hans Joerg Hoertnagl and president of the Austrian Federal Economic Chamber, Dr. Christof Leitl.
Allotment of land to the proposed special economic zone and the refinery will in no way come in the way of bringing Kakinada on the main rail route and in fact these projects may "act as a catalyst for the fulfilment of the long-cherished desire of the people here," said Mr M.S. Murthy, Chief Operating Officer, Kakinada SEZ Pvt Ltd.
Reacting to the apprehensions expressed by the Cocanada Town Passengers' Association, he issued a statement here on Thursday that such misgivings were unfounded.
He said the establishment of several industrial units in the SEZ would make the proposed line, linking Pithapuram and Kakinada, viable. ''A number of railway stations may also be planned for passenger trains in accordance with railway norms,'' he said.
He said the SEZ and the proposed railway were complementary and the fact should be realised by the passengers' association. The SEZ would generate employment and bring prosperity to the port town, he added.