Description
Introduction
The Mangalore Special Economic Zone (MSEZ) is a strategically developed industrial park designed to boost economic growth, attract investments, and create employment opportunities in the region. Located in the well-developed urban international port city of Mangalore, Karnataka, India, MSEZ offers a plethora of benefits to investors and businesses, making it an ideal destination for industrial ventures.
Strategic Location and Connectivity
Mangalore SEZ is uniquely positioned to leverage its strategic location and excellent connectivity. It is located just 5 kilometers from an international airport, 8 kilometers from an all-weather, 15-meter deep draft sea-port, and is well-connected by road and rail networks. The SEZ is easily accessible through three National Highways and several State Highways, ensuring seamless transportation of goods and services. The proximity to the Southern and Konkan Railway networks further enhances its connectivity, making it a prime location for businesses aiming to cater to both domestic and international markets.
Promoters and Governance
MSEZ is promoted by a consortium of Central and State Government entities, financial institutions, and industry bodies. The key promoters include:
Oil & Natural Gas Corporation (ONGC): The largest public sector undertaking in India and a Fortune 500 company. ONGC is also the anchor tenant through its subsidiary OMPL (ONGC Mangalore Petrochemicals Limited).
Karnataka Industrial Areas Development Board (KIADB): A Government of Karnataka entity responsible for the development of industrial areas in the state.
Infrastructure Leasing and Financial Services (IL&FS): A leading financial institution and infrastructure developer.
Kanara Chamber of Commerce & Industry (KCCI): The apex local industry body representing the interests of businesses in the region.
This robust governance structure ensures that MSEZ benefits from strong support and investment from both government and private sectors, providing a stable and conducive environment for business growth.
Industrial Park Type and Focus Sectors
MSEZ is a multi-product SEZ with a specific focus on the petroleum, petrochemical, and chemical industries. It has been accorded the status of a ‘Notified Sector Specific SEZ’ and has received environmental clearance from the Ministry of Environment & Forests. This designation highlights the SEZ’s commitment to sustainable industrial development.
The industrial park is designed to accommodate various types of industries, including:
Chemical Park: Hosting facilities for the chemical industry, including petrochemicals and downstream chemical processing.
DTZ (Domestic Tariff Zone): Allowing for the production and processing of goods for the domestic market.
SEZ (Special Economic Zone): Facilitating export-oriented units with numerous fiscal and non-fiscal benefits.
While the primary focus is on chemical and petrochemical industries, the SEZ also supports other sectors, providing a diversified industrial base.
Infrastructure and Facilities
MSEZ offers state-of-the-art infrastructure and facilities to support industrial activities. Some of the core infrastructure features include:
Bituminous Roads: Ensuring smooth transportation within the SEZ.
Effluent Treatment Plant (ETP): Managing industrial effluents to meet environmental standards.
Electrical Sub-Station: A 220 KV sub-station in close proximity ensures reliable power supply.
Solid Waste Management: Comprehensive systems for managing industrial and municipal waste.
Storm Water Drainage: Efficient drainage systems to handle stormwater.
Telecommunication and Surveillance Systems: Advanced communication networks and security surveillance for safety and operational efficiency.
Water Treatment Plant: Ensuring a steady supply of treated water for industrial use.
Additionally, the SEZ is equipped with landscaped parks, providing a pleasant working environment and contributing to the overall aesthetics of the industrial area.
Benefits and Incentives
Businesses operating within MSEZ enjoy numerous benefits and incentives that make it a highly attractive destination for investment. Some of the key incentives include:
Fiscal Benefits: Duty-free imports of capital goods, components, consumables, raw materials, and spares. Exemptions from excise duty, sales tax, VAT, and service tax.
Income Tax Exemptions: 100% exemption for the first five years, 50% exemption for the next five years, and 50% of ploughed-back export profit for the subsequent five years.
Liberal Labour Laws: Flexible labor regulations to facilitate ease of doing business.
Public Utility Services Status: Units in the SEZ enjoy the status of public utility services, providing them with additional operational benefits.
These incentives are designed to reduce operational costs, enhance profitability, and encourage investment in the SEZ.
Social and Support Infrastructure
MSEZ also emphasizes the importance of social and support infrastructure to enhance the quality of life for employees and residents. Although specific amenities such as banks, bus stands, clubs, commercial complexes, group housing, hospitals, hotels, plotted housing, post offices, schools, and shopping complexes are not explicitly mentioned in the document, the proposed development of a self-contained, integrated township with residential and commercial facilities indicates a commitment to providing a comprehensive living environment. This integrated township will support the social infrastructure needs of employees and their families, making MSEZ a preferred destination for both work and living.
Environmental and Sustainability Initiatives
MSEZ is committed to sustainable development and environmental conservation. The SEZ has received environmental clearance, indicating adherence to stringent environmental standards. Key sustainability initiatives include:
Effluent Treatment: Ensuring that industrial effluents are treated before discharge to minimize environmental impact.
Green Belt Development: Creating green spaces within the SEZ to enhance biodiversity and provide a healthy environment.
Solid Waste Management: Implementing systems to manage waste effectively and promote recycling.
These initiatives demonstrate MSEZ’s commitment to balancing industrial growth with environmental sustainability.
Plot Sizes and Flexibility
MSEZ offers flexible plot sizes to cater to the diverse needs of businesses. The availability of plots in various sizes, including options for SME units, ensures that both large enterprises and small to medium-sized businesses can find suitable spaces for their operations. This flexibility in plot sizes makes MSEZ an inclusive industrial park, accommodating a wide range of industrial activities.
Park Ownership and Public-Private Partnership
MSEZ operates under a public-private partnership model, combining the strengths of government entities and private sector expertise. The ownership structure includes:
Government: Representation from Central and State Government entities ensures policy support and infrastructure development.
Private: Involvement of financial institutions and industry bodies brings in private sector efficiency and investment.
This collaborative ownership model ensures that MSEZ benefits from both public and private sector strengths, providing a balanced and efficient governance framework.
Future Prospects and Vision
The vision for MSEZ is to become a leading industrial hub in India, attracting investments from both domestic and international businesses. The SEZ aims to create a conducive environment for industrial growth, innovation, and sustainability. Future prospects for MSEZ include:
Expansion of Industrial Sectors: Broadening the focus to include more sectors such as biotechnology, pharmaceuticals, IT, and logistics.
Enhancement of Infrastructure: Continuous improvement of infrastructure facilities to meet the evolving needs of businesses.
Sustainability Initiatives: Strengthening environmental conservation efforts and promoting green technologies.
Skill Development: Investing in skill development centers to provide a skilled workforce and support industrial growth.
By focusing on these areas, MSEZ aims to drive economic growth, create employment opportunities, and contribute to the overall development of the region.
Conclusion
The Mangalore Special Economic Zone is a testament to strategic planning, robust infrastructure, and a supportive business environment. Its strategic location, excellent connectivity, diverse industrial focus, and comprehensive benefits make it an ideal destination for businesses looking to establish and expand their operations. With a commitment to sustainability, social infrastructure, and continuous improvement, MSEZ is poised to become a leading industrial hub in India.
