CCCL signs MoU for Rs 2,500 cr SEZ

CCCL Infrastructure Ltd, part of Chennai-based Consolidated Construction Consortium Ltd, on Friday signed a memorandum of understanding (MoU) with the Tamil Nadu government to set up a special economic zone (SEZ) for food processing industry at Tuticorin in southern Tamil Nadu. The project is likely to attract an investment of Rs 2,500 crore.

According to a state government press release, the proposed SEZ will be spread over 425 acres of land and would be a joint venture between Tamil Nadu Industrial Development Corporation (Tidco) and CCCL Infrastructure. The MoU was signed in the presence of Tamil Nadu deputy chief minister M K Stalin at Chennai.

CCCL Infrastructure will invest Rs 2,500 crore, of which Rs 550 crore would be in infrastructure and other facilities in the SEZ. The project is expected to create 10,000 jobs, directly and indirectly.

The promoter has received approval of the Union government to set up the processing facility on 294 acres inside the SEZ.

Earlier, E Viswanathan, chief executive officer, CCCL Infrastructure Ltd told Business Standard that the company was looking for a private equity fund to partly fund the investment. The first unit, being set up Hexa, a honey maker, is likely to start production by this month-end, he added.

“One of the first-of-its-kind infrastructure would be automated movements of goods within SEZ,” he said. Since the SEZ will cater to the quality-sensitive export market and none of the vehicles would be allowed inside the SEZ, the entire SEZ will be automated whereby any movements within the SEZ will be on conveyor belt, according to Viswanathan.