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Kakinada SEZ, storm on the horizon

Written By Krishna on Thursday, July 26, 2012 | 12:21 AM

Kakinada SEZ

The Kakinada special economic zone (KSEZ) will soon have an exclusive Rs 2,000-crore deep-water port for importing and exporting petroleum, biotech, agricultural and other products.

ONGC, one of the promoters of KSEZ, will also have a single buoy mooring (SBM) port facility within the proposed port. The SBM model links port and refinery with two pipelines, one to import crude and the other to pump the refined fuel to exporting ships.

The deep-water port will be completed in two stages. KSEZ has already received an in-principle approval from the Centre to set up a port-based special economic zone at Kakinada. Following the nod, a special purpose vehicle (SPV) - Kakinada SEZ (KSEZ) - was incorporated to implement the project. KSPL, ONGC and IL&FS of Delhi are the stakeholders in the SPV. “We have got the necessary approvals to construct the port and have initiated the ground work to start construction.

Around Rs 1,250 crore will be spent on the first phase of the project that is expected to be completed in a year’s time. The remaining Rs 750 crore will go into the second phase of the three-year project. The port facility will be used by companies that set up their units in the 10,500-acre KSEZ,” Kakinada SEZ director KV Rao told ET.

Kakinada already has an operative port, which is also being expanded in view of the huge industrial activity in this region. Out of the 10,500 acres, around 2,500 acres have been allotted to ONGC for its Kakinada Refinery and Petrochemicals plant with an annual capacity of 1.5 lakh tonnes. ONGC plans to adopt a SBM port model.
This will be on the lines of the Mundra SEZ in Gujarat, which is five kilometres away from the port. The proposed port will help ONGC save on carriage charges of crude and refined goods as the proposed refinery is 15 km away from the shore. KSEZ authorities have recently submitted a report to the government on the allotment of land to companies investing in the SEZ.

According to sources, the list of companies include TCG Refinery Company ofMauritius (2,500 acres), SDE Engineers (1,000 acres), ETA Star Marsol, Tata Power (600 acres), Suzlon Energy (350 acres), RS Energy (200 acres), Asrit Agro Products (200 acres), Kakinada Fertilisers (200 acres), KSR Agencies Food Park (150 acres) Nicholas Piramal (100 acres) and other companies (350 acres).

Kakinada Special Economic Zone (KSEZ) has signed a memorandum of understanding (MoU) with Naturol Bio-Energy for setting up the first eco-friendly bio-diesel plant in Kakinada SEZ. The 300 TPD integrated biodiesel plant will be set up in the port town of Kakinada at an estimated cost of Rs.139.50 crore by Naturol Bio-Energy India in JV with Energea GmbH, Austria. KSEZ is a port based special economic zone project in Kakinada promoted by Kakinada Sea Ports, ONGC and IL & FS.

KSEZ has received an in-principle approval from the government of India for setting up of a 'port-based special economic zone' at Kakinada. For this a 'special purpose vehicle' (SPV), Kakinada SEZ Pvt Ltd (KSEZ) was incorporated. The project will be implemented by KSPL, ONGC and IL & FS as promoters.

The investment for developing infrastructure in 4000 acres of land and augmenting external infrastructure for KSEZ would be Rs 2000 crores.

This investment would be other than the industries located in SEZ. KSEZ made progress in various fronts like land, DPR preparation, assessing existing infrastructure, and assessing the facilities required.

"KSEZ expects the refinery and biodiesel plant investments itself in the SEZ would be Rs4,000 crore. More industries are evincing interest to locate their units in SEZ. We anticipate an investment Rs10,000 crores in the first phase by various industries in SEZ mainly petrochemicals, gas-based industries, ceramic units, power plant and other export-oriented industries. The SEZ once completed will change the entire economic scenario of East Godavari District which is agriculturally rich" M S Murthy, chief operating officer, KSEZ said.

"We are pleased to sign the MoU with Kakinada SEZ. SEZ will make the implementation process more efficient and timely as SEZ will grow to become a fully developed operating port that will have solid infrastructure facilities to support accomplishment our integrated bio-diesel project," Bhaskar Chalasani, managing director, Naturol Bio-Energy said.

KSEZ is engaging IL & FS to undertake developmental activities for next 12 months. ONGC is also proposing to set up a 5 MMTPA refinery in the SEZ. GoAP has been extending their co-operation and nominated TR&B department for coordinating the activities on behalf of GoAP. A separate MOU is under finalization between GoAP, IL&FS and KSPL for establishing the refinery.

KESZ expects a bio-diesel plant to be set up at this SEZ as it would attract other such units. For Naturol all infrastructure will be the readily available and responsibility of SEZ so that it can concentrate on implementation of the project.
Naturol Bio-Energy also signed an MoU with Energea GmbH, Austria in the presence of Austrian Trade Commissioner, Hans Joerg Hoertnagl and president of the Austrian Federal Economic Chamber, Dr. Christof Leitl.

Allotment of land to the proposed special economic zone and the refinery will in no way come in the way of bringing Kakinada on the main rail route and in fact these projects may "act as a catalyst for the fulfilment of the long-cherished desire of the people here," said Mr M.S. Murthy, Chief Operating Officer, Kakinada SEZ Pvt Ltd.
Reacting to the apprehensions expressed by the Cocanada Town Passengers' Association, he issued a statement here on Thursday that such misgivings were unfounded.

He said the establishment of several industrial units in the SEZ would make the proposed line, linking Pithapuram and Kakinada, viable. ''A number of railway stations may also be planned for passenger trains in accordance with railway norms,'' he said.
He said the SEZ and the proposed railway were complementary and the fact should be realised by the passengers' association. The SEZ would generate employment and bring prosperity to the port town, he added.

http://www.kakinadainfo.com/about-kakinada-and-cocanada/industries-in-kakinada/kakinada-sez-special-economic-zone

Kakinada SEZ: Status quo to continue for some more time
Power position likely to ease by month-end: CM

Kakinada, July 16, 2012, The Hindu Business Line: The status quo will continue on the issue of Kakinada special economic zone (KSEZ) and the Government will take a decision only after consulting all and considering the pros and cons, the Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, said.

He told presspersons here on Monday, after the conclusion of his three-day tour of East Godavari district as a part of the Indiramma Bata programme, that he was aware that farmers were agitating against the economic zone, but a decision will be taken only after a detailed and careful review of the whole project. “As of now, it is
status quo on KSEZ,” he said.

On the critical power situation in the State, the Chief Minister said the position may ease by the end of the month. The power cuts may be reduced by half as the State had received some rainfall during the month, he said. Even now, there was a shortage of 35 million units and therefore power-cuts had become inevitable.

Mr Reddy asserted the State Government was not responsible for the present power crisis, but the Union Government which was not allocating enough natural gas to the gas-based power projects in the State. As a result, they were not running to capacity and there was a lot of idle capacity and the State was suffering. On the issue of conducting elections to the local bodies and civic bodies, he said the State Government was ready to hold the elections, but there was a legal hassle. There was an unresolved issue with regard to reservations for BCs and the matter was pending with the Supreme Court. Once that was cleared, there would be no problem in holding polls.

He said the Indiramma Bata programme was taken up to acquaint himself with the problems at the grass-root level and to interact with the public in villages. The response to the programme, first launched in East Godavari, was very encouraging and he would cover other districts too. “We will give top priority to health and education,” the Chief Minister said.

CPI Demands Scrapping of Kakinada SEZ
APR 14, 2012, PTI

CPI state general secretary Dr Narayana demanded this evening that Kakinada SEZ be scrapped and the land acquired for it be restored to the farmers.

Addressing a press conference here, Narayana alleged that rules and laws were flouted during the land acquisition.

The CPI leader toured the SEZ-affected villages earlier in the day.

"The farmers were lured with prospect of attractive benefits at the time of taking over the lands. Subsequently, nothing was done for their welfare, nor did any industries come up here," he said.

TDP on What is Kakinada SEZ
The Kakinada Special Economic Zone is one of the 115 SEZ's promoted in Andhra Pradesh of which nearly 37 were in various stages of operation while rest were on paper only .

The CAG had indicted the AP Government for indiscriminate land acquisition from the farmers and their transfer to the investors without monitoring the projects execution . Only 37 SEZ's were operational with possession of 13000 acres but only Four SEZ (Sri City in Tiruapti, Fab City in Hyd , APIIC, Jedcharla and APIIC- Vizag) were grounded totalling 8625 acres

It is now revealed by the CAG and others that 80- percent of the land allocated to SEZ are not productive
MoU's and concessions are lapsing due to non functioning of the projects

Main components of Kakinada SEZ
The promoters of KSEZ- K V Rao purchased land very cheap at Rs. Three lakh per acre and also jobs and houses for the displace d farmers , but since 7 years there are no jobs or houses as the project is yet to take off and also be grounded .

Main components of SEZ
A port-based multi-product SEZ which took shape in 2005 envisages development of more than 10,500 acres in the mandals of Thondangi, Uppada and Kottapalli mandals . The KSEZ promoters promised Rs 40,000 crore in investments to set up industries like oil refineries, power plants, garments and machinery manufacturing units.

However, no major industrial activity has taken place till now and people of the mandals allege that half of the 10,000 acres was purchased illegally by paying the farmers Rs 3 lakh per acre by KSEZ promoter K V Rao. The farmers of Ramannakkapet lost 800 acres to the SEZ .

A Special Economic Zone (SEZ) covers a broad range of more specific zone types, including free trade zones, Export Processing Zones, Free Zones, Industrial estates, Free ports etc. The goal of Kakinada SEZ is to attract foreign investment. .

The deep-water port will be completed in two stages. KSEZ has already received an in-principle approval from the Centre to set up a port-based special economic zone at Kakinada. Following the nod, a special purpose vehicle (SPV) - Kakinada SEZ (KSEZ) - was incorporated to implement the project. KSPL, ONGC and IL&FS of Delhi are the stakeholders in the SPV. The SEZ will have an exclusive Rs 2,000-crore deep-water port for importing and exporting petroleum, biotech, agricultural and other products. The port facility will be used by companies that set up their units in the 10,500-acre KSEZ,

Out of the 10,500 acres, around 2,500 acres have been allotted to ONGC for its Kakinada Refinery and Petrochemicals plant with an annual capacity of 1.5 lakh tonnes. ONGC plans to adopt a SBM port model.This will be on the lines of the Mundra
SEZ in Gujarat.

The list of companies include TCG Refinery Company of Mauritius (2,500 acres), SDE Engineers (1,000 acres), ETA Star Marsol, Tata Power (600 acres), Suzlon Energy (350 acres), RS Energy (200 acres), Asrit Agro Products (200 acres), Kakinada Fertilisers (200 acres), KSR Agencies Food Park (150 acres) Nicholas Piramal (100 acres) and other companies (350 acres.

Kakinada Special Economic Zone (KSEZ) has signed a (MoU) with Naturol Bio-Energy India for setting up the first eco-friendly bio-diesel plant in Kakinada SEZ. The 300 TPD integrated biodiesel plant will be set up at an estimated cost of Rs.139.50 crore in JV with Energea GmbH, Austria.

Farmers Agitation
The farmers have been conducting `vanta-varpu' in the fields for the last two months as a mark of their protest.

"We have no leader to guide us. Farmers are fighting as their livelihood is at stake," an activist, K Rajendra,

Hundreds of anti-Kakinada Special Economic Zone agitators detained a large number of cops of Uppada Kottapalli and Pithapuram police stations for several hours. The angry protesters also damaged a police jeep.

They gave vent to their ire by targeting the cops who tried to drive out hundreds of farmers from the agriculture fields when the latter forcibly tried to plough the fields, which were taken over by the promoters of KSEZ.

The protesters even detained some journalists who went to cover the protests.
The angry farmers detained Pithapuram police when the latter rushed to rescue their colleagues from Uppada Kothapalli.

Hundreds of farmers from nearby villages also arrived on the scene and shouted slogans against the police and the KSEZ management.

AP Govt has booked 450 cases on agitators including farmers, activists on campaigns against SEZ.

Return Kakinada SEZ land to farmers
HYDERABAD: The TDP has decided to support the farmers’ cause and fight against the forcible acquisition of lands from them in the name of SEZs and industrialisation. As a first step towards its fight against illegal land deals, TDP chief N Chandrababu Naidu has decided to visit Kakinada SEZ on April 19 and extend support to the agitating farmers there.
Naidu held a meeting with senior party leaders here on Thursday to decide the type of agitation to be taken up against land allotments made by the then chief minister YS Rajasekhara Reddy. Naidu constituted a five-member committee to study whether the lands allotted by the government were used or diverted by the industrialists for real estate business.

The five-member committee includes Kalava Srinivasulu, Kodela Siva Prasada Rao, Konakalla Narayana Rao, M Kishan Reddy and Dadi Veerabhadra Rao. Naidu noted that arable lands were forcibly acquired by the YSR government from the farmers and were later sold for higher prices to those close to the corridors of power. The YSR govt hoodwinked the farmers by making false promises of bringing SEZs, projects, industries and creating huge employment. By promising the moon, the YSR government ushered in neo-Zamindari system in the state, Naidu alleged.

“If TDP is voted to power we will cancel all illegal land deals and return the rich arable lands to the native farmers,” Naidu said.

Naidu said YSR govt had doled out 8,800 acres to Lepakshi Knowledge city in Anantapur, 16,000 acres to Vanpic and 15,000 acres to Brahmani Steels. ‘’TDP will wage a relentless battle against govt till farmers get their lands back,’’ he said. “Those who got land from govt mortgaged them to banks and invested money in industries owned by YSR family. We will take back all lands,” Naidu averred.
If industrialists wants to set up SEZs or industries they should purchase lands directly from farmers after paying the prevailing market price. The govt should not act as a broker between farmers and industrialists, Naidu contended. “TDP will fight till justice is done to farmers,” Naidu declared.

April 13, 2012, New Indian Express

Storm clouds gather over Kakinada SEZ
Siva G, Feb 21, 2012, The Times of India

THONDANGI (EAST GODAVARI): The anti-Kakinada Special Economic Zone (SEZ) sentiment is smouldering. The sense one gets in this mandal is that the villagers, particularly youth, are not going to be cowed down by arrests at the crack of dawn and police threats as they look to intensify their struggle against a project which, they believe, would spell their doom.

The youth, a majority of whom are graduates, are planning to launch a Sompeta-like stir by bringing together people of Thondangi and Uppada Kottapalli mandals. "We will sensitize people, launch awareness campaigns and even resort to a militant struggle against the KSEZ management and government if we have to," protestor K Rambabu said.

The unrest among people in more than 30 affected villages is palpable with residents seething at the government's bid to evict farmers and close wells and canals to push the project.

"The government is in cahoots with KSEZ management and together they have been trying to evict farmers despite court orders, issuing GOs that are in violation of judicial directives," anti-KSEZ agitation convenor Chitna Suryanarayna Murthy told TOI.

With protestors taking out rallies and conducting dharnas demanding that the SEZ project be scrapped, police have been kept busy, registering 450 cases so far against the agitators. "Police harassment of agitators has become a regular feature. They are even deploying plainclothes cops to terrorize the youth," Chandaka Veera Babu, one of the protestors, said.

The villagers said that people belonging to the SC community in Uppada Kottapalli mandal had been evicted after being threatened with dire consequences for their continued participation in the agitation. Some 1,200 acres in Ramanakkapeta and Ponnada villages, 500 acres in Bucchireddypalem and another 500 acres in Chodipalli villages have been identified for the first phase of SEZ development.

The project, a port-based multi-product SEZ which took shape in 2005, envisages development of more than 10,500 acres in Thondangi and Uppada Kottapalli mandals. Protestors allege that half of the land was purchased illegally by paying Rs 3 lakh per acre by KV Rao, the SEZ promoter. Promoters said that Rs 40,000 crore in investments would be pumped into the SEZ to set up industries like oil refinery, power plants, garments and machinery manufacturing units.

Infotech starts operations from Kakinada SEZ Business Standard Oct 05, 2011
Infotech Enterprises Limited, a Hyderabad-based technology solutions provider offering engineering and geographic information (GI) services, commenced operations
in its new development centre from its facility at the IT special economic zone
(SEZ) in Kakinada. Infotech is the first company in this SEZ.

Phase-I of the new development centre will house 150 seats by the end of this month, and would be scaled up to 400 by January 2012. This is the company’s sixth facility in India - two at Hyderabad, one at Bangalore’s Electronics City, Noida and at Rushikonda SEZ IT park in Visakhapatnam. The second facility at the Kakinada SEZ, being developed on a five-acre campus over a built-up area of 100,000 sft, will have 1,000 seats.

Infotech commenced operations in Kakinada early in February 2007 from the Software Technology Parks of India (STPI)’s incubation centre. At present, the company has 470 associates between the two locations – city centre and STPI.

Over 30 per cent of Infotech’s employees in Kakinada are women and over 90 per cent are locals from in and around Kakinada. The development centres in Kakinada largely caters to the company’s oil and gas customers around the world.

“Phase-I of the facility was completed in four months. From 150 seats, we would be adding another 250 seats and operating it in two shifts, this 300-people centre would grow to 800 people by January 2012,” B Ashok Reddy, president (global HR and corporate affairs), Infotech, stated in a release on Monday.

“This is in line with our growth strategy to create facilities in SEZs and in Tier-II cities. This will enable us to provide employment opportunities to the rich engineering talent available from universities in and around Kakinada,” he said.

GMR speeds up work on Rs 26,000-cr Kakinada SEZ
Katya B Naidu / Mumbai Jul 01, 2011, Business Standard

Bangalore-based infrastructure firm GMR is fast-tracking its proposed special economic zone (SEZ) in Kakinada, Andhra Pradesh. It has initiated talks with possible anchor tenants for the multi-product, port-based SEZ, and will kick-start work on the physical infrastructure like roads, water and port connectivity in the next few months. The estimated investment potential into the SEZ by various companies is in the range of Rs 6,000-30,000 crore.

“We have already acquired all of the 10,000 acre land required for the SEZ. We will be investing Rs 3,000-4,000 crore in developing the SEZ,” said CEO S G K Kishore. GMR expects to spend around Rs 2,000 crore for developing and operating the port.
GMR has a 51 per cent stake in the project, which is promoted as a part of Andhra Pradesh’s Petroleum, Chemicals and Petrochemical Investment Region, which extends along the east coast from Visakhapatnam to Kakinada.

The rest of the stake are held by IL&FS, Kakinada Sea Ports and Andhra Pradesh Industrial Infrastructure.

GMR is currently meeting domestic and international companies interested in setting up shops. The infrastructure major also said it was close to finishing the design, master planning of the port.

It also proposes to set up a liquefied natural gas (LNG) terminal within the SEZ, for which it plans to rope in interested equity investors.

Among the projects envisaged in the SEZ are refinery projects, petrochemical units, ports and possibly an LNG terminal. Kakinada, which is strategically close to the natural gas belt in the Krishna-Godavari basin, is also close to a number of gas-based power projects coming up in the area. GMR itself has a natural gas-based 388.5-megawatt (Mw) project in Vemagiri, which it is expanding by 768 Mw.

GMR Infrastructure buys 51% in Kakinada SEZ
Dec 25, 2010, K V Ramana, DNA
GMR Infrastructure will kickstart the development of a port-based multi-product special economic zone at Kakinada in Andhra Pradesh, after entering into a share subscription and shareholders agreement for acquiring 51% stake in Kakinada SEZ Pvt Ltd on Friday.

The value of the transaction is not known, but people tracking the development said it would be “significant”.

The SEZ at Kakinada has been a non-starter for a few years now, owing to a variety of litigations including the one over ONGC’s decision to pull out of the SEZ.
Initially, Kakinada Sea Ports, ONGC and IL&FS formed an SPV to promote the SEZ with the grand plans of focusing on the petroleum and refinery sector with an overall investment potential of about Rs 25,000 crore.

ONGC was keen on setting up a refinery at the SEZ and also other ancillaries since the SEZ is in the proposed petroleum, chemicals and petrochemicals investment region (PCPIR) extending up to Visakhapatnam.

“The broad design of the project has not changed. There would be minor tinkering here and there. The project had some issues earlier and now all that has been cleared. The full scale works on developing the project would begin as early as possible,” K V Rao, the managing director of Kakinada SEZ, told DNA.
However, he has not provided the financials of the project.

“The details are being worked out. We will be able to come out with the financial details in a week’s time,” a GMR official said.

According to details available with government sources, the project is coming up in about 8,321 acres and several companies have already come forward to set up their units in the SEZ.

“This is a multi product SEZ. The master plan is ready and it would also have a captive port,” Rao said.

However, sources in the SEZ development sector said that the project is still not completely out of trouble.

“There have been issues about conversion of agriculture land into non-agriculture purposes. The state government is keen on exempting the project from the agriculture related norms. But, it is going to be a tedious process. Though it is not impossible for GMR to develop the SEZ, it is not going to be easy as well,” a source said.

Kakinada SEZ Port (Captive Port) Govt declared KSEZ as Minor Port vide GO .MS. NO.10, I & I (Ports.1) Dept ,Dt 3-12-07 as per the request made by M/S Kakinada Special Economic Zone Pvt Ltd.
 The location of the Port is about 15 KM North of Kakinada deep water port.

 Kakinada Special economic Zone Port in East Godavari District is comes under the jurisdiction of Port Officer, Kakinada.
 Kakinada Special economic Zone Pvt Ltd, proposed to handle refinery products and cryogenic LPG.
 The required land for establishment of captive port is already acquired by M/s KSEZ and conducting technical studies to take up the construction.

http://www.apports.in/in/content/view/58/75/

Title Kakinada SezSince :2005
Contact Person: Chief Project Manager
Address: D.No : 2-9A-10/1, Venkat Nagar, Kakinada - 03
Landmark: Beside Pragathi college

Description: A Special Economic Zone (SEZ) covers a broad range of more specific zone types, including free trade zones, Export Processing Zones, Free Zones, Industrial estates, Free ports etc. The goal of Kakinada SEZ is to increase foreign investment.
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Distance from : Rail : 0.86 km, Bus : 1.05 km
http://www.inkakinada.com/list/kakinada-sez
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