IL&FS and Kanara Chamber of Commerce & Industry have signed an MoU for the proposed SPV for the implementation of petrochemical SEZ in Mangalore.

It may be recalled that on 30 August 2004, KCCI signed an agreement with Karnataka Industrial Areas Development Board (KIADB) and ONGC, for the development of an SEZ in Mangalore. These three promoters are forming an SPV, and the recent agreement seeks the inclusion of IL&FS as co-promoter.

IL&FS and KCCI will together contribute 51 per cent equity of the proposed SPV. Of this, KCCI is likely to invest around 2 per cent of the equity. While ONGC, through its subsidiary Mangalore Refinery & Petrochemicals, is likely to contribute around 26 per cent of the equity, KIADB is likely to contribute the rest.

IL&FS role will be to mobilize financial resources for the project and to identify prospective promoters to set up their units in the Mangalore petrochemicals SEZ.

Also See:

Mangalore SEZ: SPV by 15 Jan (30-Dec-05)