In the second phase, the project capacity is likely to go up to 1,700 mw, company officials said.

The MoU also covers setting up of one or more desalination plants to meet the need-based potable water requirements at the SEZ.

Positra SEZ is to be located adjacent to the Positra port on a sprawling 200 sq km and the process of land acquisition is currently on, officals said.The SEZ would be a joint venture between Sea King Infrastructure Ltd and the Gujarat government, with Sea King being the majority partner.

The setting up of the SEZ was the high point of the Exim policy this year. SEZs are areas where units located would be able to import duty-free capital goods and raw materials inclusive of the domestic tariff area (DTA) without paying terminal excise duty.

The only condition for units in SEZs would be to export the entire production. DTA sales would be permitted only on payment of full applicable duties without any concession.

The cost of the project for the Positra SEZ as well as those of the power project is "yet to be crystallised", officials said. The company is currently in talks with financial institution about the project costs and its structuring of debt-equity.

The Positra SEZ, besides having a sea port would also have an international airport, roads and railways networks to satisfy the needs of the industrial and business units located around. It would also have educational institutions and entertainment plazas for the social needs of the people.