MANGALORE: The State Government will constitute a special purpose vehicle (SPV) to implement the Mangalore special economic zone (SEZ) project by January 15, Finance and Industries Minister P.G.R. Sindhia said here on Thursday.

Speaking to presspersons after a review meeting, he noted that in 2004, the State Government, the Kanara Chamber of Commerce and Industries (KCCI) and the Oil and Natural Gas Corporation (ONGC) signed a memorandum of understanding (MoU) to constitute the SEZ.

The SPV will look into its implementation aspects, he added. He said he held talks with ONGC officials in this regard last week.

Delay

The Minister said there has been a delay in starting the SEZ owing to some reasons, though the MoU was signed in 2004. ONGC proposes to invest Rs. 26,000 crores in different sectors under the project.

The Centre, in principle, has agreed to set up a SEZ for the information technology (IT) sector in Mangalore. Land acquisition for the project is under way. The Government is making efforts to promote cities such as Mysore, Mangalore and Hubli as an IT destination beyond Bangalore.

Interest

The Government has observed that some IT industries are evincing interest in setting up units in Mangalore after Bangalore and Mysore. The Government believes that there is scope for the growth of the IT sector in Mangalore, and it is committed to provide infrastructural facilities for the same.

To a query on the future of Kudremukh Iron Ore Company Ltd. (KIOCL), he said that since the Supreme Court has ordered that mining be stopped in Kudremukh by this month-end, the Cabinet will meet in January to decide on the future course of action.

Subsidy

Mr. Sindhia said the Government owes Rs. 380 crores in subsidy to small-scale industries (SSIs) in the State for the period 1999 to 2004. Of the amount, Rs. 180 crores has been released after the coalition Government came to power.

The remainder will be released next year. In Dakshina Kannada, SSIs should get Rs. 4 crores in subsidy, he added.

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