The MoU to jointly develop the SEZ was signed by Tamil Nadu Industrial Development Corporation chairman S Ramasundaram, a state government undertaking, and GVK Power and Infrastructure Limited chairman G V Krishna Reddy in the presence of Chief Minister M Karunanidhi.

Electricity Minister N Veerasamy and Union Minister for IT and Communication A Raja were also present.

Krishna Reddy told reporters that the MoU was an 'excellent example' of a public-private partnership that was aimed at creating state-of-the-art infrastructure and facilities for industrial development.

"The decision to partner with Tamil Nadu was based on the ample opportunities the state offered", he said. An official press release said the project would be completed in 2009 and would attract investments worth Rs 5,000 crore (Rs 50 billion) within 10 years. The project would generate employment for 50,000 persons, it said.

The SEZ would cater to industries like textile garments, leather, engineering goods, pharmaceuticals, power, IT, iron and steel, fertilisers, chemicals, petrochemicals, floriculture and electronic and communication, a GKV Group press release here said.

It said the project was being implemented as a joint venture between GVK and Tidco through a special purpose vehicle company, GVK Infratech Private Limited, a subsidiary of GVK Power and Infrastructure Limited.

The SPV with its core team would execute the project with responsibilities such as land acquisition, development and infrastructure construction along with project-related activities, including operation and maintenance of common facilities such as roads, water supply, testing facilities, warehousing facilities and marketing of developed land to domestic and global investors, the release added.