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The Tamil Nadu Chief Minister, Ms J. Jayalalithaa, at the inauguration of the Mahindra Industrial Park near Chennai on Friday. Also seen (left to right) are Mr Arun Nanda, Executive Director and President, Infrastructure Development Sector, Mahindra & Mahindra, Mr Anand Mahindra, Vice-Chairman and Managing Director, M&M, and Mr Rajiv Khanna, CEO, Mahindra Industrial Park Ltd.

CHENNAI, Sept. 20

MAHINDRA City, the industrial park promoted by Mahindra Industrial Park Ltd (MIPL), is expected to attract investments in information technology industries and business process outsourcing. The Tamil Nadu Chief Minister, Ms J. Jayalalithaa, formally inaugurated the 1,434-acre industrial park on the National Highway 45, about 40 km from Chennai, on Friday.

Addressing the function, Ms Jayalalithaa said the State should exploit the opportunity that globalisation offered. Infrastructure was basic to enable industries achieve competitiveness, she said.

Despite various constraints, the Government was committed to providing quality power and infrastructure. With 13 terabytes of connectivity enabled through the submarine cables, the optical fibre backbone and the information technology corridor, the State is set to emerge the software hub of the nation.

It was essential to create competitiveness in the manufacturing sector. Provisions of world-class infrastructure, reduction in transaction cost, strong human resource base and a conducive climate for investment are crucial factors. Tamil Nadu offers these and is poised for a resurgence of industry, she said.

Mr Arun Nanda, Executive Director and President, Infrastructure Development Sector, Mahindra & Mahindra, said that MIPL would focus on information technology, business process outsourcing, apparel segment and biotech apart from light engineering. It will catalyse creation of clusters in these focal areas and enable global competitiveness. With MIPL providing the infrastructure support, the investors could focus on core businesses, he said.

Mr Anand Mahindra, Vice-Chairman and Managing Director, Mahindra and Mahindra, said that MIPL has identified a focussed clientele from international businesses and knowledge-intensive industries. Discussions are on with large information technology and business process outsourcing companies, he said.

Later, at a press conference, Mr Rajiv Khanna, Managing Director and CEO, MIPL, said that over 140 acres have been earmarked for information technology and related industries. The clientele that MIPL was looking at would require over 25 - 40 acres each and there was a need for larger area. This would be considered in the second phase. The information technology and business process outsourcing are expected to be strong segments in MIPL, he said.

Mr Arun Nanda said a few deals have been concluded with prospective investors and advances received. The focus areas are apparel industries, hardware and software and logistics services. They were looking at bonded warehouses, international container depots, raw material warehousing and truck yards. The company plans to offer built-up space for information technology industries, he said.

The total cost of the project was Rs 300 crore with the Mahindra Group holding 50 per cent of the equity, IL & FS 39 per cent and the Tamil Nadu Industrial Development Corporation 11 per cent. This also included a Rs 60-crore term loan from State Bank of India and the Union Bank.

According to a press release, Mahindra City is envisaged as an industrial park catering to business and lifestyle requirements.

Designed as a world class integrated township and business city, it offers specialist business zones with customised infrastructure and exclusive housing zones with recreational facilities.

The master planning is by JTC International, Singapore, and the design provides for efficient internal circulation, future expansion, social amenities and infrastructure.

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