India-based GMR Infrastructure has entered into an agreement with China's Guizhou International Investment Corp., a consortium of three Chinese manufacturing firms, to construct an industrial park in a special economic zone in Kakinada, India. The project is valued as much as a $3.5 billion investment in the next five years.
GIIC has signed a memorandum of understanding with Kakinada SEZ, a subsidiary of GMR Infrastructure, to set up an industrial park for the Chinese equipment manufacturing companies
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 and will generate more than 5,000 jobs.
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 billion to $3 billion during the next five years to set up their operations.
The investing companies will get incentives from the state besides availing "benefits" under the Make in India campaign.
Based in Andhra Pradesh, Kakinada SEZ is run by Kakinada SEZ Pvt Ltd., a subsidiary of GMR Infrastructure. Kakinada SEZ is a port-based multi-product special economic zone of approximately 10,500 acres. Situated on the eastern coast of India in an area rich in oil and natural gas deposits, it has logistical linkages to national highways, railway networks, airports and seaports.