Srei Infrastructure hopes to complete land purchase for auto component SEZ by September

Srei Infrastructure Development, which is developing an auto component special economic zone at Guptamoni near Kharagpur, in a joint venture with the Industrial Infrastructure Development Corp (WBIIDC) expects the process of land purchase for the project, to be over by September-end.

The government had recently granted Srei Infrastructure Development an extension till June next year to acquire land for an auto component special economic zone in Bengal.

“We expect the land purchase process to be over by September, after which we will invite auto ancillary companies to set up units there,” said Hemant Kanoria, chairman and managing director, Srei Infrastructure Finance Limited.

So far the special purpose vehicle has purchased 33.47 hectares of land, out of the planned development over 100 hectares.

Sources close to the development said, Srei had already initiated talks with both domestic and international auto ancillary companies for roping in an anchor investor.

Recently, Sabyasachi Sen, principal secretary, commerce and industries department, West Bengal, on his visit to Malaysia in March-April 2009, had assessed the possibility of Malaysian automobile and auto component companies investing in Bengal Integrated Auto Industrial Park Pvt. Ltd (BIAIPPL), — the joint venture company between Srei and the West Bengal government.

The delegation had met leading auto and auto component manufacturing companies like Proton, Perodua, Bufori, and DRB HICOM in Malaysia, apart from various government organizations in Malaysia including Ministry of International Trade and Industry (MITI), Malaysian Industrial Development Authority (MIDA) and Malaysia External Trade Development Corporation (MATRADE).

As a first step towards investigating the possibility of recommending Malaysian companies to set up shop in the state, MITI had agreed to instruct MIDA for investigating the possibility of sending a Fact Finding Mission to West Bengal later this year. The delegation had also met representatives of Ranhill, a premier Malaysian engineering and construction company. The auto ancilliary project is of significance, as it will be a major automobile sector project after the Nano pullout from Bengal.