The Hindu Business Line : AP allots land for Bhartiya Intl SEZ

Hyderabad, May 4 Bhartiya International SEZ Ltd, a special purpose vehicle (SPV) promoted by Bhartiya International Ltd (BIL) and Andhra Pradesh Industrial Infrastructure Corporation Ltd (APIIC), has signed a deed of conveyance for the transfer of 250.49 acres in Nellore district with the Corporation.

The New Delhi-based Bhartiya International Ltd (BIL), a manufacturer of leather footwear, had earlier signed a shareholders agreement with APIIC for setting up a leather and leather products special economic zone.

According to officials, APIIC will have a 26 per cent equity stake in the SPV while the rest will be with BIL.

“The equity that APIIC has is because of the transfer of land for the SPV promoted by the Corporation and the company. According to the initial estimates, Bhartiya International will invest between Rs 70 crore and Rs 75 crore for development of infrastructure (internal development) in the SEZ,” the official told Business Line.

He added that the company is likely to bring in another nine occupants in the SEZ and they have a three years exit clause. “According to the exit clause, if the project is not implemented then APIIC has a right to cancel the SPV. In the same way if the project comes up we can exit but the first right of refusal will be with Bhartiya International,” he said.

Caparo group unit

Meanwhile, the ground breaking ceremony for a luxury bus body building unit in Naidupet in Nellore being promoted by the Caparo Group of Lord Swraj Paul is likely to take place on May 8. The Group has tied up with Hyundai Motor Company for the facility.

“The Chief Executive, Caparo Group, Mr Angad Paul, will be meeting officials from the State Government a day before the event to finalise the programme,” he said.

The London-based Caparo Group — a manufacturer of steel, automotive and general engineering products — had earlier this year said that it will invest Rs 3,500 crore in setting up an automotive and aerospace components park. The €1-billion company, which currently operates 28 component units in India with 2,000 employees, signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh in January this year.

“The company is looking at a 2,500 acre park which will also have another 500 acre export-oriented SEZ,” he added.

More Stories on : Infrastructure | Leather | Andhra Pradesh

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