GMR Infrastructure has inked an agreement with Guizhou International Investment Corp (GiIC), a consortium of three Chinese manufacturing firms, to set up units at its special economic zones (SEZs) in Kakinada, Andhra Pradesh. The move will see $3.5 billion (about Rs 22,299 crore) worth of investments from the Chinese companies over the next five years.
GMR did not disclose the amount of rental income it will get from GiIC.
GiIC signed an MoU with Kakinada SEZ (KSEZ), a subsidiary of GMR Infra, to set up an industrial park for high-end Chinese equipment manufacturing companies, GMR Infra said in a BSE filing on Monday. The Chinese consortium has leased 2,000 acres of land.
“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,” the statement added.
GiIC would invest $500 million in developing the infrastructure of the park, which would house leading Chinese manufacturing industries that deal in power equipment, electronics, wind and solar energy and smart technologies. It will provide more than 5,000 jobs for both skilled and unskilled workers.
KSEZ is a port-based multi- product SEZ spread over 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.