New Delhi, Sept 15 (UNI) Steel Authority of India Ltd (SAIL) today entered into an agreement with IL&FS Infrastructure Development Corporation (IIDC) to form a special purpose vehicle (SPV) to operate a Special Economic Zone (SEZ) in Salem, Tamil Nadu.
Under the SPV, the companies will hold equal shares, SAIL said in a statement.
''The application for approval of the SEZ shall be submitted shortly to the Government. It is likely to be considered by the Board of Approvals of the Ministry of Commerce in the month of October,'' it said.
The SEZ is to be developed in an area adjacent to SAIL's Salem Steel Plant (SSP).
SAIL will provide customised steel products to prospective units in the SEZ, which could be set up to manufacture architectural facades, railway applications, dairy plants, chemical and pharmaceutical plants, machines for the food processing industry, tubes and pipes, auto component and panels for lifts.
SAIL expects the demand to increase significantly after commissioning of the planned facilities under its growth plan.
In addition, it will also receive the benefits allowed to an SEZ developer in the form of land lease rentals, tax concessions and earnings from provision of services to the SEZ.
''While SAIL will provide land, IIDC will provide advisory and other related services for the SEZ,'' the statement added.