Sri City to get Rs 17,500 cr

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.

Called Sri City, the SEZ is promoted by Ravindra Sannareddy, chairman, Megasoft Limited, and would come up on 5,000 acres in Tada in Nellore district of Andhra Pradesh, 55 km north of Chennai.

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.