Mahindra & Mahindra is setting up a greenfield special economic zone near Chennai at an estimated cost of over Rs 190 crore (Rs 1.9 billion). The designated area, which has been cleared by the government, will specialise in automobile components, information technology products and apparel.
Senior government officials told Business Standard that the board of approvals for SEZs in the commerce department had given an in-principle approval for the project. A clearance by Commerce and Industry Minister Kamal Nath is expected soon.
The SEZ, located around 30 km from Chennai, will be spread over 700 hectares. Companies like Infosys and three Fortune 100 companies had evinced interest in buying plots in the SEZ, a commerce ministry official said. The SEZ is expected to generate around 10,000 jobs by 2005.
Despite several attempts, Mahindra & Mahindra declined to divulge further details about the project.
This will be the second SEZ in Tamil Nadu. The government had earlier cleared an SEZ at Nangunery, which was to be set up by the Tamil Nadu Industrial Development Corporation. The corporation also has a minority stake in the present project.
The commerce and industry ministry has, so far, approved the establishment of 25 SEZs. Of the SEZs cleared so far, those at Indore (Madhya Pradesh), Salt Lake (West Bengal), Jaipur and Jodhpur (Rajasthan) are now ready.
None of the private sector SEZs proposed in the country are, however, anywhere near financial closure.
Among the large corporate groups, only the Tatas have proposed to enter the SEZ business. They have an approval from the government to set up an SEZ in Gopalpur in Orissa.
The ministry has also prepared a draft SEZ Bill, which is expected to be taken up by the Cabinet before being introduced in Parliament.
The government expects financial closure of SEZs to be speeded up once the legislation is in place.
Special features
The SEZ will be spread over 700 hectares
Companies like Infosys and three Fortune 100 companies have evinced interest in buying plots in the SEZ
It is expected to generate around 10,000 jobs by 2005
