The Navi Mumbai-based special economic zone (SEZ) that integrates the Navi Mumbai SEZ and the Maha-Mumbai SEZ projects has achieved financial closure.

IDBI sanctioned Rs 486 crore for the project on Tuesday and the construction work is set to begin on July 10. A spokesperson for the Skil Infrastructure Ltd-led consortium said the IDBI-led consortium had set some preconditions, which included passing the SEZ Act by the Centre.

Skil has also sold its stake in the Pipavav port and Pipavav railway projects for Rs 300 crore to bring in equity for this project as per the terms set by the financial institution.

Under the terms of the project, the financial closure was to have been achieved between June 30 and July 7. Skil will pay Rs 50 crore in cash to the City and Industrial Development Corporation (CIDCO) and Rs 236 crore worth of bank guarantee.

The consortium is also required to take possession of 1150 acres of land adjacent to the JNPT for the project.

Skil consortium, in partnership with CIDCO, is leading the project with IDBI as the lead bank for the partial financing of the first phase, worth Rs 2200 crore, of the project.

The other shareholders of the project include real estate major Hiranandani Constructions, the Singapore government-owned Jurong Town group and engineering company Parsons Brinkerhoff of the USA.

IL&FS will be a co-investor in the project and has committed $ 30 million.

Other institutions participating in the project include IDFC (Rs 250 crore), IL&FS (Rs 150 crore), HUDCO (Rs250 crore), IFC, Washington ($ 75 million comprising debt and equity), and Asian Development Bank, Manila ($ 75 million).

Other Indian banks and financial institutions are also part of the project’s investment plan.

A study conducted by KPMG estimated that the SEZ project would receive around $13 billion in investment from the users of the zone. The current project is expected to be fully operational in two years from the time of commencement of construction, and generate direct and indirect employment for over 50,000 people.