New Delhi/Shanghai: GMR Infrastructure has inked a pact with GIIC of China to set up units at its special economic zone (SEZ) in Andhra Pradesh's Kakinada, which will attract an investment of $3.5 billion over the next five years, a company statement said on Monday.
"Kakinada SEZ (KSEZ), a subsidiary of GMR Infrastructure Limited, signed a memorandum of understanding (MoU) with Guizhou International Investment Corporation (GIIC) - a consortium of three leading Chinese manufacturing companies - to set up an industrial park for the high end Chinese equipment manufacturing companies," the statement said.
"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," it added.
The agreement was signed by C. Prasanna, president, Kakinada SEZ in the presence of Prime Minister Narendra Modi, B.V.N. Rao, business chairman, transportation and urban infrastructure of GMR Infra and senior officials of GIIC during the prime minister's visit to China last week.
GIIC plans to set up a 2,000-acre industrial park in Kakinada SEZ for Chinese high-end equipment manufacturing companies. The statement said Chinese companies dealing in power equipment, electronics, wind & solar energy, smart technologies, etc., are planning to set up their manufacturing units in the SEZ.
This industrial park developed by KSEZ and GIIC will bring development to the entire Kakinada region and generate more than 5,000 jobs for both skilled and unskilled workers.
KSEZ is a port-based multi-product SEZ, spread over approximately 10,500 acres. Situated on the eastern coast in an area rich in oil and natural gas deposits, this has logistical linkages to national highways, railway networks, air and sea ports. It caters to the existing process industries and emerging industries like refinery, renewable energy, ship building, biotech, nanotech, IT/ITEs, toys, games and sports goods and manufacturing park.