labels: Economy - general
Sri City multi-product SEZ to attract Rs17,500 crore investment news
31 July 2008

Mumbai: Sri City, South India's largest notified multi-product special economic zone being promoted by non-resident Indian and chairman of Mega Soft Ravindra Sannareddy and his associates, at Tada in Chittoor district of Andhra Pradesh, is expected to attract investments of over Rs17,500 crore.

Sri City (Private) Ltd, being set up with an initial investment of Rs1,000 crore, would come up in 5,000 acres of land that include he domestic tariff area.

''It is expected to attract initial investments of Rs8,500 crore in first three phase of operations which will be increased to Rs17,500 crore,'' said Ravindra Sannareddy, chairman of Sri City.

The SEZ is expected to attract additional investment of Rs10,000 crore in hospitals, hotels, resorts and other recreational facilities to be developed by private parties. ''This is the first major private-public development project,'' he added.

The project, coming up at a distance of 55km from Chennai, focuses on manufacturing and IT/ITeS/BPO sectors. Andhra Pradesh Industrial Development Corporation (APIDC), private equity funds and banks will be equity partners of the mega SEZ project.

''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,'' he said.

''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 and will have a combined investment of Rs17,500 crore when fully occupied in five years. ''The SEZ will provide all services through a single-window system,'' he added.

With ambitious development plans on the anvil, mainly in infrastructure projects in the public-private participation mode, Andhra Pradesh is looking to non-resident Indians as well as other foreign-based entities to pick up the several opportunities on offer.

Andhra Pradesh, which receives the highest NRI remittances, has been approached by several NRIs with ambitious investment proposals. The state has also emerged as one of the most favored destinations for property investment in India.

The state capital Hyderabad, which has been rated as the fourth largest growing city in the world, has seen its cityscape extended by the Hyderabad Metropolitan Development Authority to step up the infrastructure and facilities in the city.


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Sri City multi-product SEZ to attract Rs17,500 crore investment