China's Guizhou International Investment Corporation (GIIC), a consortium of three Chinese manufacturing companies, has reached an agreement to set up an industrial park in Kakinada SEZ, according to a press statement.
Based in Andhra Pradesh, Kakinada SEZ is run by Kakinada SEZ Pvt Ltd (KSEZ), a subsidiary of PE-backed GMR Infrastructure Ltd.
As part of the deal, GIIC will make an investment of $500 million to develop infrastructure and various facilities in the proposed 2,000 acre industrial park in Kakinada SEZ, GMR Infra said in the statement.
Once the industrial park is built, it will house Chinese companies in power equipment, electronics, wind and solar energy, and smart technologies. These companies would also invest an additional $2-3 billion over the next five years to set up their operations.
Kakinada SEZ, a port-based multi-product special economic zone (SEZ) spread over approximately 10,500 acres, 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.
The Chinese companies are expected to benefit from the government’s ‘Make in India’ campaign, and will also be able to avail various investment incentives from the Andhra Pradesh government.
The proposed industrial park will generate more than 5,000 jobs for both skilled and unskilled workers, GMR Infra said.
On Monday, shares of GMR Infra ended at Rs 15.09 each, up 0.73 per cent on the BSE in a strong Mumbai market.