Work on the SEZ, coming up in Tada, to begin from Aug 9.

Chennai-based Sri City Pvt Ltd, which is setting up a multi-product special economic zone (SEZ) through public private partnership (PPP) in Andhra Pradesh, has signed MoUs with 10 companies for the project. The initial investment in the SEZ will be Rs 1,000 crore.

The SEZ would generate 10,000 jobs in the next 2-3 years and is expected to attract over Rs 17,500 crore by 2012-13.

Work on the project is expected to start on August 9. Surana Group, Hong Kong-based Intimate Apparels, Innova Biotech and Eura Abrasives are among the companies that have signed MoUs to set up their units in the SEZ to be developed in phases.

Speaking to reporters here on Wednesday, Sannareddy said by 2012-13 the total investment in the SEZ would be Rs 17,500 crore by 300 industries. Around 100,000 direct and 75,000 indirect jobs are expected to be created.

He added that the initial investment of Rs 1,000 crore would be used for developing common infrastructure such as connectivity and water.

Of this, Rs 500 crore would be in the form of equity and the rest would be through loans and internal accruals, Sannareddy, chairman and managing director, Sri City, said

While PE investors will hold 60 per cent, promoter stake would be 10 per cent and government equity less than 1 per cent. The remaining would be held by the shareholders.

The SEZ will focus on manufacturing and engineering industries such as auto components, apparel and fashion, bio-technology, pharmaceuticals, hardware, electronics, logistics, warehousing, renewable energy, leather products, light engineering, sports and toys. It is expected to support 400-500 business units.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - S&P reaches 7-month high before hitting wall - World Bank President Zoellick to step down on June 30 - Oil cos cut jet fuel prices by Rs 350/kl - Telcos operating profit to rise 5% in 2 yrs: Crisil - PESB recommends SS Narsing Rao for CIL's top slot

Read Business news in  Advertisements -  Now property search gets more exciting than ever before! -  High Growth Business Opportunities in Africa - Register to explore -  Save over Rs.3000 with IndianOil Citibank Card -  We live for our family. have you secured them? -  India's No. 1 Property Site. Click here to know more.. -  Diseases earlier, Saving Costs, Extending Lives. Know More.. -  Get 5% cashback on telephone bills with Citi -  Enjoy the journey as much as the destination. click to know more.. -  Exim Bank Conclave on India - Africa Project Partnership. Know more.. -  Medium-sized businesses are the engines of a smarter planet. -  Be part of it The World's Largest Aircraft. -  Creating Wealth made simple the SIP way. Know more.. -  Only Developer to give a guarantee on time space & rate. -  Office 365 for professionals and small businesses. -  Buy Your Property with Our Triple Guarantee in India. -  Improve Patient Care & Experience. Click here to know more -  Win a Business Class Ticket to Europe..Know more.. -   Introduce a New Automotive Luxury Car.. know more -  Health is Wealth..... Insurance + Savings... Know More...