South Indias largest SEZ to attract Rs 17.5k cr funds

Written by Infrastructure Bureau | Chennai, Jul 30 | Updated: Jul 31 2008, 05:56am hrs
Sri City (Private) Ltd, promoted by an NRI and the chairman of BSE-listed Mega Soft Ravindra Sannareddy and his associates, is setting up south Indias largest notified multi-product SEZ (special economic zone) at Tada in Chittoor district of Andhra Pradesh, which is 55km away from Chennai with a clear focus on manufacturing and IT/ITeS/BPO sectors. The other equity partners of this mega SEZ include Andhra Pradesh Industrial Development Corporation (APIDC) (minority stakeholder), private equity funds and banks.

Developed with an initial investment of Rs 1,000 crore, the SEZ would come up in a sprawling 5,000 acres of land including domestic tariff area. It is expected to attract initial investments of Rs 8,500 crore in first three phase of operations which will be increased to Rs 17,500 crore, said Ravindra Sannareddy, chairman, Sri City. In addition to that, the SEZ is expected to attract Rs 10,000 crore investment through hospitals, hotels, resorts and other recreational facilities to be developed by private players. This is the first major private-public development project, he added.

Addressing a press conference on Wednesday, Sannareddy said, The SEZ will generate over 100,000 direct employment and another 1,75,000 jobs indirectly. We have completed the financial closure as well as land acquisition and the company has already started developing necessary amenities like power, water, treatment plants and roads.

We have chosen Tada due to its proximity to Chennai airport, seaports and other logistic purposes apart from its well-established connectivity by rail and road. We may even add 2,000 acres in the second phase of development, he said. The SEZ will accommodate nearly 300 units of different categories and will have a combined investment of Rs 17,500 crore when fully occupied in five years. The SEZ will provide all services through a single-window system, he added.