Pact with Tidco for Rs 2,300-cr project
Chennai, Aug. 6 GMR Infrastructure, a Hyderabad-based infrastructure company, is to set up a 3,300-acre multi-product SEZ in Krishnagiri.
GMR Infrastructure entered into an agreement on Monday with the Tamil Nadu Industrial Development Corporation (Tidco), a State-run industry promotion agency, to implement the project. The agreement was signed in the presence of the Chief Minister, Mr M. Karunanidhi.
The Chairman, GMR Group, Mr G.M. Rao, said the project with an initial investment of Rs 2,300 crore in basic infrastructure would eventually involve investments of over Rs 11,000 crore in industrial and social infrastructure and generate over three lakh jobs.
Companies in electronics, engineering, IT, ITES, biotechnology and nanotechnology are expected to take up space in the SEZ, he said. GMR Infrastructure would be the main promoter, which would set up a special purpose vehicle (SPV) in partnership with Tidco to implement the project.
Land procurement would be on a ‘community-based participative approach’ with assured livelihood support and rehabilitation for the landowners. It would be environment-friendly in terms of power, water and waste management. A few sites have been identified but the exact location of the SEZ is yet to be finalised, Mr Rao said.
Krishnagiri offers advantage in terms of proximity to Bangalore, connectivity to NH 7 (Chennai - Bangalore highway) and a good rail network linking it to Bangalore, Coimbatore and Salem. The project would go on-stream in 2009 and be fully occupied in five years.
GMR Infrastructure Ltd, a listed company, is the holding company of the GMR Group, which implements infrastructure projects through SPVs. Its infrastructure projects cover energy, roads, and airports. Its revenue as of March 2007 was Rs 1,987 crore with an asset base of Rs 30,000 crore.
Tidco has carried out a market survey and preliminary feasibility study for the project. The SEZ, which has received the Centre’s in principle approval, has a potential to generate exports of over Rs 16,000 crore a year.