GMR inks MoU with TIDCO for SEZ in Tamil Nadu

GMR Infrastructure Ltd has announced that the Company on August 06, 2007 entered into an Memorandum of Understanding (MOU) with Tamil Nadu Industrial Development Corporation (TIDCO) for the development of a Multi Product Special Economic Zone (SEZ) in Krishnagiri District, Tamil Nadu.

In this regard the Company is proposing to release a Press Release:

"The GMR Group August 06, 2007 entered into an MOU with Tamil Nadu Industrial Development Corporation (TIDCO) for the development of a Multi Product Special Economic Zone (SEZ) in Krishnagiri District, Tamil N4adu. The signing ceremony was done in the presence of the Hon. Chief Minister of Tamil Nadu, Shri. M Karunanidhi at the Secretariat in Chennai.

Project Background

The SEZ would be developed through a Special Purpose Vehicle (SPV) to be set up through a Joint Venture in partnership with TIDCO, the modalities for which would be finalised shortly. This multi product SEZ will be spread around 3300 acres in the Krishnagiri District of Tamil Nadu. The project cost for developing the basic infrastructure is estimated around Rs 2300 crore. The total development cost including industrial and social infrastructure would be around Rs 11000 Crore.

Highlights

The selection of the co-developer by TIDCO was carried out through a two stage competitive bidding process.

The land which would be dry and free of any cultivation is expected to be procured by the SPV over a period of one year.

A project with Many Advantages

The SEZ advantageously located as it is in close proximity to Bangalore Metropolis - an extension of the city's vibrant industrial suburb. The SEZ would be operational by 2009, and the entire development would be completed by 2014.

Other key Features

The SEZ will be of international grade with world class infrastructure, green corridors with a special emphasis on high quality, social infrastructure, and will also be ecologically efficient and sustainable.

This multi product SEZ will focus on a variety of industries ranging from Bio Technology, IT and ITES besides the traditional electronics and engineering areas. Additional benefits of this SEZ include excellent connectivity through state highways NH 7 and a good Railway network. Over three lakh people would also benefit from this SEZ, both through direct and indirect employment. The project is expected to generate exports to the tune of Rs 16,000 crore by the fifth year of operation (2014). Added advantage of this project would be the related development through its multiplier effect, on the physical and social infrastructure in the region.

The very low agricultural productivity and no settlement in the region designated for this SEZ is expected to facilitate easy procurement. The SPV would adopt a 'Community based Participative Approach' for land procurement where adequate attention will be given to compensation, relief and complete rehabilitation of all land owners.

The SPV will also take the active support of the State Government of Tamil Nadu, as well as TIDCO to facilitate the land procurement process and timely implementation of the project."