First manufacturing unit to commence production in March.
Chennai-based Sri City Pvt Ltd has signed MoUs with 17 companies that have committed to invest around Rs 800 crore in its multi-product special economic zone (SEZ) in Andhra Pradesh. The first manufacturing unit is expected to commence production in March 2009.
Speaking to Business Standard on the sidelines of CII’s Manufacturing Summit 2008 here, Ravindra Sannareddy promoter of Sri City SEZ and chairman, Megasoft Limited, said these 17 companies had started construction work on 500 acre inside the SEZ. They would create over 10,000 jobs.
The company is also likely to finalise a deal with a Germany-based auto equipment manufacturer. The deal would attract investment to the tune of $0.5 billion (around Rs 2,500 crore). This apart it is in final stages of closing deals with five other companies.
Reddy said Sri City was also in talks with Krishnapatnam and Ennore ports for priority-based agreement under which cargo manufactured for the export market in Sri City would be given priority at the ports for handling.
The SEZ, coming up on 5,000 acres at Tada in Nellore district of Andhra Pradesh in public-private partnership, is likely to attract Rs 17,500 crore by 2012-13. The SEZ would create around 100,000 direct and 75,000 indirect jobs.
Some of the companies, which had signed up with Sri City include Surana Group, Hong Kong-based Intimate Apparels, Innova Biotech and Euro Abrasives.