INDIA BUSINESS WORLD - JUNE 2006
THE MONTH THAT WAS...

MITSUI TO SHELL OUT RS 480 CR FOR 48% STAKE IN 5 FTWZS

JAPANESE giant Mitsui has agreed to pick up 48% stake in five free trade warehousing zones (FTWZs) being developed by MMTC. The total investment by the diversified group in these ventures is estimated at around Rs 480 crore. An understanding to this effect has been arrived at during recent consultations with representatives of the Mitsui Group and Japanese government, commerce & industry minister Kamal Nath.

The total investment in the five FTWZ projects taken up by MMTC is estimated at Rs1,000 crore. While Mitsui will hold 48% stake, the public sector company will have 26% stake in these projects. The remaining 26% equity would be held by Indian infrastructure development companies.

The proposed FTWZs would be located in Greater Noida (near Delhi ), Kandla, Mumbai, Haldia and Ennore near Chennai. The average investment in each project is around Rs.200 crore.

Mitsui has also agreed to prepare a blueprint for a Japanese township within the electronics city that Japan plans to set up in India for its small & medium enterprises (SMEs). While Haryana has offered to provide 2,000 acres of land for the ambitious project, various states like Tamil Nadu, West Bengal and UP are also in the race to house the hi-tech venture. "Lack of social infrastructure should not hamper Japanese investors. Therefore, we are discussing establishment of schools, hospitals, restaurants and entertainment facilities for Japanese citizens who would work in the electronics city," Mr Nath said. In the FTWZs too, provisions are being made for supporting infrastructure on the lines of SEZs. The The FTWZs to be developed by the MMTC-Mitsui joint venture would have, on an average, nearly five lakh sq meters of built-up space each. Both bonded as well as non-bonded warehousing areas would be built separately in these facilities.

MMTC chief S D Kapoor said talks were on with state governments for allocation of land. Top quality trading infrastructure would be build trough these projects, he added. The proposal to set up FTWZs was mooted by the government in the 2004 Foreign Trade Policy.