The Mumbai Integrated SEZ (MiSEZ) project -- the merged incarnation of Cidco's Navi Mumbai SEZ and Sea King Infrastructure's MahaMumbai SEZ -- has achieved financial closure, it is learnt.

Industrial Development Bank of India, the lead financial institution, on 25 May 2005 sanctioned Rs.500 crore to the project, helping it attain the milestone. Other lenders to the project are IDFC (Rs.250 crore), IL&FS (Rs.150 crore), IFC, Washington ($75 million in debt and equity) and Asian Development Bank ($75 million).

The passage of the SEZ Act, which took place in early May 2005, was an important "conditions precedent" for the project to attain financial closure. Under the terms of the project awarded to Sea King Infrastructure Ltd (SKIL), promoted by Nikhil Gandhi, the project was to achieve financial closure between 30 June 2005 and 7 July 2005. The SKIL consortium that also includes the Hiranandani group and the Avinash Bhosale group will now pay Rs.50 crore in cash to Cidco and also furnish bank guarantees of Rs.236 crore. SKIL will now take possession of 1,150 acres of land adjacent to the Jawaharlal Nehru Port.

Another pre-condition set by IDBI, IFC and IDFC was that SKIL should sell off its equity stake in Pipavav Port and Pipavav Railways, which it also did in April 2004. SKIL raised Rs.300 crore through this route.

Construction work on the Rs.950 crore project is expected to start construction in July 2005, with completion envisaged in 24 months.

It is learnt that MiSEZ has entered into MoUs with 225 prospective occupants from various industries like IT, BPOs, light engineering, textiles, food processing, etc.

Also See:

Jurong to take up stake in MiSEZ (09-Aug-04)

Detailed profile of Mumbai Integrated SEZ (September 2004)