A Presentation on Special Economy Zone: Mundra Port

Presented by: RANU JAIN (ROLL NO 47) NEHA SURANA (ROLL NO 35) JIMIT PARIKH(ROLL NO 23) TARAK CHAUHAN(ROLL NO 59)

ContentCompany profileHistoryVision & MissionDetails of Mundra PortIntroduction of SEZObjectives of SEZMundra SEZGovt PoliciesFuture Prospects

Company profileThe company was renamed as Mundra Port

and Special Economic Zone Limited, to reflect the nature of business

Mundra Port provides cargo handling and other value-added port services. Mundra SEZ is India’s first port-based multi-product SEZ.

HistoryMundra Port and Special Economic Zone Ltd is part of the

legacy of more than 4,000 years of Indian maritime glory.

Today, it has developed state-of-the-art facilities and has one of the deep draft multi- purpose ports on the western coast of the country.

The Adani Group, despite a humble beginning in 1988, is one of the fastest growing professionally owned enterprises in India and in the global arena.

The journey from a being a India’s most trusted trading house to a diversified conglomerate is fast, yet memorable.

vision

To be globally preferred associate ,an organization having responsible concern for employees, society, stakeholders

Mission

To acquire ,develop and manage knowledge ,to apply this across our business for benefit of stakeholder to do profitability

Details of Mundra PortThe Port of Mundra is India’s biggest private

port. Located in the Kutch district of the state of Gujarat,

Mundra lies on the north shores of the Gulf of Kutch about 50 kilometers south of Anjar and 44 kilometers east the Port of Mandvi.

The Port of Mundra is not only a private port, but it is also a special economic zone.

It is India’s first multi-product port-based special economic zone (SEZ)

Incorporated in 1998 as Gujarat Adani Port Limited (GAPL),

the company began operating in 2001. The Mundra Special Economic Zone was

incorporated in 2003 and was merged with GAPL in 2006.

The combined company was renamed “Mundra Port and Special Economic Zone Limited.”

What is sez

This policy intended to make SEZs an engine for economic growth supported by quality infrastructure complemented by an attractive fiscal package, both at the Centre and the State level, with the minimum possible regulations

What does sez covers ?Free Trade Zones(FTZ)

Export Processing Zones (EPZ)

Free Zones (FZ)

Free Ports, Urban Enterprise Zones and others

Industrial parks or Industrial Estates (IE)

Goal

Usually the goal of a structure is to increase foreign direct investment by foreign investors, typically an international business or a multinational corporation (MNC).

Why sez introducedThe need to enhance foreign investment and

promote exports from the country they announced the introduction of Special Economic Zones policy in the country

As of 2007, more than 500 SEZs have been proposed, 220 of which have been created

India passed special economic zone act in 2005

In India, the government has been proactive in the development of the SEZs

They have formulated policies, reviewed them occasionally and have ensured that ample facilities are provided to the developers of the SEZs as well as to the companies setting up units in the SEZs

Objectives of the SEZ Act I. generation of additional economic activity II. promotion of exports of goods and servicesIII. promotion of investment from domestic and

foreign sourcesIV. creation of employment opportunitiesV. development of infrastructure facilities;

Connectivity to Mundra PortRoad

Mundra Port is about 65 km from Bhuj and 400 km from Ahmedabad. It is easily accessible by the national highway Rail

Mundra Port is well connected to the Indian railway network.• The port has 7 railway sidings and two dedicated diesel locomotives• It can handle double stack container trains• A 64 km private railway line has been developed which connects the port with the national network at Adipur.

AirThe nearest commercial airports to Mundra Port are

at Bhuj (65 km) and Kandla (60 km). Mundra Port itself has a private operational airstrip

that is suitable for landing mid-size jets.

PipelineBecause of the distance advantage over large ports

like the ones at Mumbai, Mundra is a port of choice for crude and other liquid cargo bound for the northern hinterland including the refineries of Punjab. Pipelines have been laid to Bhatinda, etc

Corporate InfoMundra Port and Special Economic Zone Ltd

is promoted by the Adani Group.  The Adani Group started as a trading house

in 1988 and has since grown to become one of India's most trusted and fastest growing conglomerates with diverse ventures spanning Commodity Trading, the Development of Infrastructure and Energy

Mundra SEZ

The Adani Group promoted Mundra Port and Special Economic Zone (MPSEZ) is India’s largest port-led SEZ.

Positioned on the west coast of India, the port and SEZ is ideally situated for exports to African, Middle Eastern and western countries besides being conveniently located to service the huge hinterland of northern India

Leveraging the advantage of the port, the MPSEZ is being developed over an area exceeding 100 sq km as a privately operated multi product, large format, diversified special economic zone approved by the government of India

The MPSEZ offers world class infrastructure for those who want to establish an industry in this special economic zone

CompetitorsKandla Port TrustPipavav PortMumbai Port TrustJNPT and other minor ports of Gujarat

Maritime Board (GMB) carrying outLighter age operations

Social InfrastructureWe understand that development of physical

infrastructure alone cannot usher in overall development at the desired level if the social infrastructure is not simultaneously developed.

Social infrastructure or the system of social services, networks, and facilities that support people and healthy communities means ensuring necessities like quality health care, education,  adequate income, shelter, safety, recreation, and cultural expression.

 We at MPSEZ have provided top most priority to developing social infrastructure, which in turn will provide jump start to units in our SEZ

Other developments

TThe company has successfully commenced operations at its 60 million tonne fully mechanized coal handling terminal at Mundra. With this MPSEZ's total handling capacity stands at more than 115 million tones at Mundra.

This fully mechanized coal handling facility is the world's largest coal receiving terminal, which may be expanded to 100 MMTPA in the future.

MPSEZ won the rights to develop an coal import terminal at the Vizag port on the east coast of India.

MPSEZ wins bid for Australia Coal Terminal for Australian Dollor 1.8 billion. The terminal is fully mechanized port which has capacity of handling 50 MMTPA and scope of addition upto 80

Port CommerceThe Port of Mundra and SEZ hopes to be a

global player and preferred partner that pursues innovation in business, technological, and commercial areas.

It strives to add value to partners’ activities and efforts while also reducing its impact on the environment.

The Port of Mundra and SEZ is responsible for acquiring, developing, and managing knowledge

As a private port, the Port of Mundra also seeks to ensure tangible and intangible profits

Government PoliciesThe Government of India through the SEZ Policy

has made available a basket of Incentives, Exemptions, The benefits available under the SEZ Policy

essentially translate into Reduced Cost of Infrastructure, Utilities,

Raw Material, Capital, Manpower andOperation Ease. These Baskets of Benefits available to the

Developer and the Units areaimed at enabling Global competitiveness.

LEGISLATION GOVERNING SEZs

The SEZs in India are governed under the following legislation of the Govt. of India. SEZ Act of the Govt. of India, June 2005 SEZ Rules, February 2006 (under the SEZ Act, June 2005)

Mundra SEZ in addition to the above is also regulated by the Gujarat State SEZ Act,

March 2004.largest Private SEZ to be notified by the Government of India.

Milestones1998 – Incorporated as Gujarat Adani Port

Ltd.2001 – Start of commercial operation.2003 – start container terminal 1 ( Operated

by MICT)2006 – merged MSEZ and got approvel for

multi product Special Economic Zone.2007 – Container Terminal 2 0perational

Future Prospects:Mundra Port to set up coal terminal at Vizag PortFuture plan Mundra Port & Special Economic

Zone plans international airport, awaits government nod

 Mundra Port and Special Economic Zone (MPSEZL) would invest Rs15000 crore in development of a modern coal handling terminal, a container terminal, a port with dry and bulk cargo berths and liquid cargo berths at the Mundra port in Gujarat. The company intends to start commercial operation of the proposed facilities in a phased manner from 2011 onwards

As per recent reports, the promoter Adani group plans to pump in around Rs 6,000 crore over the next five years for expanding the Mundra port.

The company had in November 2008 signed a memorandum of understanding (MoU) in Mumbai for setting up a dedicated automobile terminal with Nippon Yusen Kaisha (NYK) of Japan and Wallenius Wilhelmsen Lines (WWL) of Norway

Mundra Port and Special Economic Zone (MPSEZL) has entered into memorandum of understanding (MoU) with Government of Gujarat represented by Gujarat Maritime Board (GMB) at Vibrant Gujarat, Global Investors` Summit 2009 for expansion and development of new facilities in Gujarat involving investment of approximately Rs150 billion.

MPSEZL intends to commence commercial operation of proposed port facilities in a phased manner from 2011 and onwards.