Mahindra World City to attract Rs 13,000 cr investment

Mahindra World City, promoted by the $7.1 billion Mahindra Group, had said that two of its special economic zones (SEZs), at Chennai and Jaipur, are likely to attract investments worth over Rs 13,000 crore. The company is into developing SEZs and domestic tariff area (DTAs).

Sangeeta Prasad, Chief Operating Officer, Mahindra World City-Chennai, said that the group has forayed into real estate business through Mahindra Lifespace Developers Ltd, which promoted six million sq ft of space and in the process of developing another eight million sq ft across the country. The SEZs and DTAs are developed by Mahindra World City, which is developing SEZ and DTA in Chennai and Jaipur.

The Mahindra World City project at Maraimalainagar, near Chennai, was developed under public private partnership model along with the Tamil Nadu Industrial Development Corporation (TIDCO), with 89 per cent and 11 per cent respectively. The zone spread over in 1,550 acres of which 850 acres have been notified as SEZ for IT, ITeS, Auto Ancillaries and for apparel and fashion.

The project was notified in 2005 and so far attracted investments worth Rs 2,200 crore and likely to attract another Rs 3,300 crore by 2016-17. The zone houses companies including Infosys, Mind Tree, Cap Gemini, Tech Mahindra in IT SEZ and companies like Brakes India, Sundaram Clayton, TVS Wabco in auto ancillary. Some of the auto majors like BMW, JC Valves, Renault Nissan, Mahindra & Mahindra are located in the DTAs.

Exports from the zone rose to Rs 2,300 crore in 2009-10 from Rs 1,540 crore in 2008-09, an increase of 49 per cent and likely to touch Rs 3,000 crore during the current fiscal. Number of people employed in the zone is likely to increase to 80,000 in the next eight years from 15,000 currently, she added.

Commenting on the Jaipur Mahindra World City project, she said, the project is being promoted, along with the Rajasthan government, in 3,000 acres of land for IT, light engineering and handicrafts. While 35 customers have signed up, two companies started operations and one more is likely to start operation in July.