Chinese consortium to invest $500 mn in GMR SEZ

Kakinada SEZ signs MoU with Guizhou International Investment Corp to set up industrial park for Chinese firms

Kakinada SEZ Pvt Ltd (KSEZ), a subsidiary of Bengaluru-based infrastructure major GMR Infrastructure, has signed an agreement with Guizhou International Investment Corporation (GIIC) to set up an industrial park for high-end Chinese equipment manufacturing companies.

According to the agreement, GIIC, a consortium of three leading Chinese manufacturing firms, will invest $500 million in developing the infrastructure and various facilities of the industrial park, which would house leading Chinese manufacturing companies. These firms would additionally invest $2-3 billion in setting up their operations over the next five years.

GIIC plans to set up a 2,000-acre industrial park in KSEZ for the Chinese companies. The park, which will be developed by KSEZ and GIIC, will bring development to the entire Kakinada region and generate about 5,000 jobs for both skilled and unskilled workers, GMR Infra said in a filing to the BSE.

Chinese companies from power equipment, electronics, wind and solar energy and smart technologies are planning to set up their manufacturing units in Kakinada SEZ. Apart from infrastructure facilities, these companies will also be able to avail various benefits from the Prime Minister's Make in India campaign and Andhra Pradesh government's investment incentives in the state, the statement added.

Speaking on the occasion, B V N Rao, business chairman, transportation and urban infrastructure at GMR Infrastructure, said: “This is a moment of pride for us. Through this MoU with GIIC, we are not only able to attract investments but also provide economic development to the region and state.”

The agreement was signed by Challa Prasanna, president, Kakinada SEZ, in the presence of Prime Minister Narendra Modi and Rao during the Prime Minister’s visit to China last week.

KSEZ is a port-based multi product special economic zone, spread over 10,500 acres. Situated strategically on the eastern coast in an area rich in oil and natural gas deposits, this has a good logistical linkages to national highways, railway networks, air and sea ports.

This SEZ caters to the existing process industries and emerging industries such as refinery, renewable energy, ship building, biotech, nanotech, IT/ITES, toys, games and sports goods manufacturing park, among others.