Chinese company to set up units at GMR SEZ, to invest $3.5 billion

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posted on 9 years ago — updated on 1 second ago

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GMR Infrastructure on Monday said it has inked pact with Guizhou International Investment Corp (GiIC), a consortium of three Chinese manufacturing firms, to set up units at its SEZ in Kakinada, a move that will see $3.5 billion worth of investments in the next 5 years.

New Delhi: GMR Infrastructure on Monday said it has inked pact with Guizhou International Investment Corp (GiIC), a consortium of three Chinese manufacturing firms, to set up units at its SEZ in Kakinada, a move that will see $3.5 billion worth of investments in the next 5 years.

GiIC has signed a Memorandum of Understanding (MoU) with Kakinada SEZ (KSEZ), a subsidiary of GMR Infrastructure, to set up an industrial park for the high-end Chinese equipment manufacturing companies, a BSE filing said.

"The agreement was signed by KSEZ President Challa Prasanna in the presence of Prime Minister Narendra Modi and GMR Infra Business Chairman (Transportation & Urban Infrastructure) BVN Rao and senior officials of GilC," GMR Infra said, in the filing.

Chinese companies that deal in power equipment, electronics, wind & solar energy and smart technologies are planning to set up their manufacturing units in Kakinada SEZ, it added.

"GiIC would invest $500 million in developing the infrastructure and various facilities of the industrial park, which would house leading Chinese manufacturing industries.

These Chinese companies would additionally invest $2-3 billion in setting up their operations over the next 5 years," the filing read.

Apart from world-class infrastructure facilities, these companies will also be able to avail of various benefits from Prime Minister's 'Make in India' campaign and Andhra Pradesh government's investment incentives in the state, it added.

"GiIC plans to set up 2,000-acre Industrial Park in Kakinada SEZ for the Chinese high-end equipment manufacturing companies. This world-class industrial park developed by KSEZ and GiIC will bring development across entire Kakinada, and generate more than 5,000 jobs for both skilled and unskilled workers," it said.

KSEZ is a port-based Multi Product Special Economic Zone spread over around 10,500 acres. Situated on the eastern coast in an area rich in oil and natural gas deposits, it has logistical linkages to national highways, railway networks, air and sea ports.

This SEZ caters to the existing process industries and emerging ones like refinery, renewable energy, ship building, biotech, nanotech, IT/ITeS, toys, games and sports goods manufacturing park and the like.