Mahindra City - Corporate India's first operational SEZ
Business line, Mumbai , 9 September 2004
The special purpose vehicle - Mahindra Industrial Park Ltd (MIPL) - floated by the Mahindra Gesco
Developers Ltd in association with the Tamil Nadu Industrial Development Corporation was granted the
approval to this effect by the Ministry of Commerce and Industry on Wednesday.
Talking to newspersons here on Thursday, Mr. Arun K. Nanda, Executive Director, Mahindra & Mahindra Ltd, said the Rs 350-crore project, was on its way with an investment of over Rs 200 crore already made.
This was India's first integrated business city with a public private partnership where 89 per cent of the Rs 20- crore equity capital came from Mahindra and the rest from TIDCO.
"This was not like any in-principle approval as has been claimed by some. We sold land to Infosys
Technologies some four months back and their first facility will become operational by December 2004. We
have signed up with a few others, two of them being TTK Healthcare and Kryolan, Germany," Mr. Nanda said.
The SEZ, situated about an hour's drive away from Chennai, will cater to three sectors - information
technology (software, hardware and bio-informatics), apparel and fashion accessories and auto ancillaries. The 1,435-acre township would have some 600 acres dedicated as domestic tariff area and some 800 acres catering to the SEZ.
The Singapore-based Ascendas is being roped in as the maintenance contractor.
Infosys has acquired 129 acres at the SEZ, where it will develop what could become the world's single largest
software development centre.
The software major is planning to develop 3.5 million sq feet of space to accommodate 25,000 hands at a
cost of Rs 1,250 crore.
According to Mr. B.G. Menon, Chief Operating Officer, MIPL, the apparels industry was going to witness
much consolidation in the post-quota regime.
Already, there was much interest shown by some players in Tirupur, he said.
The cost of development at the SEZ worked out to Rs 22 lakh per acre, he said.
Meanwhile, the major chunk of revenue is expected to flow from the 200-acre residential component where
the investment is expected to exceed a few thousand crores.