AP industry finds TN an attractive investment destination

Hyderabad, May 30 | Updated: May 31 2007, 05:31am hrs
After achieving considerable growth in their home turf, some of the big corporate houses in Andhra Pradesh are heading to Tamil Nadu for greener pastures. While some have already announced their multi-crore plans for the Tamil Nadu market, some players are scouting for land and viable and lucrative business propositions for a good beginning.

The list of companies which have already firmed up their plans to invest in Tamil Nadu would include Secunderabad-based Nuziveedu Seeds Ltd (NSL) and an entrepreneur from Hyderabad in association with Ras al Khaimah Investment Authority (RKIA). The Secunderabad-based company, which has presence in the fields including seeds, textile, sugar and co-generation business, is investing about Rs 1,500 crore for establishing a special economic zone for IT, ITeS and bio-technology companies. The project is coming up in three phases at Sholinganallur near Chennai and the work is slated to begin in June and the entire project is expected to be completed within four years. The company has already floated Zillion Estates, a SPV for the project.

Koneru Prasad Rao, another entrepreneur from Hyderabad, plans to develop two mega townships one each at Coimbatore and Kancheepuram in association with RKIA at an estimated cost of Rs 20,000 crore. The Coimbatore project would house an IT SEZ and an integrated feeder township covering golf course, shopping malls, resort hotel, health spa etc. The project is expected to be completed in five years. The other is a 500-acre Kadalur Marina project in Kancheepuram district which would have water sports, leisure entertainment, high-end residential facilities and a world class golf course.

Other big names like GMR and GVK groups are also looking at investing in Tamil Nadu by setting up SEZ projects on their own but are yet to identify the land. According to Tamil Nadu government sources, they are still scouting for land to house their projects. They are also trying to take part in the SEZ projects of the Tamil Nadu government. They are in the race for development of SEZ in places like Perumbalur and Hosur. IVRCL and Narne group of companies are also trying to buy some land in Tamil Nadu to develop township projects.

Sources said, TIDCO has decided not to involve in the land acquisition process. They would want to encourage only those projects where the promoters come with both the project idea and necessary land. The four players who are scouting for land might come to TIDCO for a partnership or go alone. Though there might be some delay for new projects to come up in the state because of issues relating to sourcing of land, they are sure to happen as Tamil Nadu is an attractive investment destination. Tamil Nadu is the first choice for them over Bangalore, they added.