Steel Authority of India Limited (SAIL) has recently revived its plan to develop a Special Economic Zone (SEZ) at Salem in Tamil Nadu. This decision was taken by the country’s largest steel manufacturing firm in order to meet the growing demand for steel in both the domestic and the international markets. The company has invited new Expressions of Interest (EoIs) to work out the collaborative venture that had stalled in 2009 after the exit of the Infrastructure Leasing & Financial Services Limited (IL&FS) offshoot, Infrastructure Development Corporation (IIDC). According to SK Roongta, Chairman, SAIL, the process of signing the Memorandum of Understanding (MoU) will take a few months’ time.



The latest reports indicate that, as with the earlier MoU signed with IIDC in 2007, the project will involve the development of an SEZ sprawled over an area of 250 acres. This will involve the development of a special purpose vehicle (SPV) which will be floated by SAIL on a 50:50 basis to develop, operate and maintain the SEZ. Moreover, the SEZ project proposes to develop manufacturing facilities, architectural facades, railway applications, dairy plants and chemical and pharmaceutical plants for diverse industry applications. With the revival of the project, the company aims to move forward towards its expansion plan. This will involve a sum of around Rs 60,000 crore and double its capacity.