Steel Authority of India Ltd (SAIL)'s proposal to set up a Special Economic Zone (SEZ) at Salem has been given formal clearance by the Board of Approval (BoA) of the Ministry of Commerce in its meeting held here today. Earlier, SAIL has signed a memorandum of understanding with IL&FS Infrastructure Development Corporation (IIDC) for forming a special purpose vehicle (SPV) to develop and operate an SEZ for the steel sector at Salem in Tamil Nadu. As per the proposed SPV, SAIL and IIDC would hold equity in equal proportion.
SAIL, which will provide land for the SEZ adjoinging its steel plant at Salem, will play the role of an anchor by providing customised seel producers to prospective units that come up in the SEZ. These units would manufacture architectural facades, railway applications, dairy plants, chenical and pharmaceutical plants, machines for the food processing industry, tubes and pipes, auto components, panels for lifts, etc.