Kakinada SEZ (special economic zone), a subsidiary of GMR Infrastructure will turn into a Chinese manufacturing hub sprawled across 2,000 acres, after it signed a pact with Guizhou International Investment Corp (GiIC) on Monday.
GilC is a consortium of three Chinese manufacturing firms that will set up units at the Kakinada SEZ, with an investment of $3.5 billion over the next five years.
High-end Chinese equipment manufacturing companies that deal in power equipment, electronics, wind & solar energy and smart technologies will set up shop in Kakinada in Andhra Pradesh, which is around 65 kms from Rajahmundry.
The memorandum of understanding (Mou) was signed by Kakinada SEZ president Challa Prasanna in the presence of Prime Minister Narendra Modi and GMR Infra Business chairman (Transportation & Urban Infrastructure), GMR Infra said in a regulatory filing.
Kakinada SEZ is a port-based multi-product special economic zone spread over around 10,500 acres. Situated on the eastern coast in an area rich in oil and natural gas deposits, it has logistical linkages to national highways, railway networks, air and sea ports.
Kakinada SEZ caters to the existing process industries and emerging ones like refinery, renewable energy, ship building, biotech, nanotech, IT/ITeS, toys, games and sports goods manufacturing park and the like.
At 10:47 am the GMR Infra stock was trading 1.33 per cent up at Rs 15.29, outperforming the broader Nifty and the Sensex which were down 0.09 per cent.
(With PTI Inputs)
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