A senior MADC executive confirmed the companies are in talks for land allotment in the proposed SEZ.

"MADC is in talks with leading IT players and investors. For example, L&T Infocity close to finalise land allotment in the IT park," said R C Sinha, vice-chairman and managing director, MADC.

L&T Infocity is a joint venture of Larsen & Toubro and Andhra Pradesh Industrial Infrastructure Corporation.

Earlier, Satyam [Get Quote] Computer and Shapoorji Pallonji & Co had purchased 100 acres each at SEZ for setting up IT park in the proposed Multi-Modal International Passenger and Cargo Hub at Nagpur.

MADC has been mandated by the state government to develop an international airport and SEZ at Nagpur.

Sinha added MADC has secured in-principle approval from union government for setting up SEZ and has acquired over 1,475 hectare for the project. "The proposed area for the IT park is 400 hectare and this will be increased based on demand," he said.

This area is proposed to be developed as an IT city which would house BPO activities, call centres, data centres, software production houses and animation studios.

MADC plans to invite expression of interest next month for developing a road and rail terminal for better connectivity.

"MIHAN will also have residential areas, open spaces, hotels, water supply, sewage system, entertainment facilities and an international residential school," Sinha added.