Sri City (P) Limited founded by Ravindra Sannareddy, a non-resident Indian, announced the setting up of South India’s largest notified multi-product SEZ at Tada in Chittoor district of Andhra Pradesh, with an initial investment outlay of Rs 1,000 crore, and is expected to attract investments of Rs 17,5000 crore. The project is coming up in functional partnership with the Andhra Pradesh Government.
Announcing the Sri City SEZ project Sannareddy said that, the SEZ which would come up in a sprawling 5,000 acres of land, will be developed with an initial investment of Rs 1,000 crore. He said that the project was expected to attract initial investments of Rs 8,500 crore in first three phase of operations which will be increased to Rs 17,500 crore.
According to Sannareddy, Sri City has tied up with private equity funds and leading banks to finance the project while among the other equity partners of this mega SEZ also include Andhra Pradesh Industrial Development Corporation (APIDC) as a minority stakeholder. “We have completed the financial closure as well as land acquisition and the company has already started developing necessary amenities like power, water, treatment plants and roads,“ he said.
The Minister for Major Industries, Sugar, Commerce and Export Promotion of Andhra, Pradesh, J. Geeta Reddy, has said that her government would give support for Sri City SEZ and ensure that it would be developed into a world-class infrastructure.
Sannareddy said that addition to envisaged project, the SEZ was also expected to attract Rs 10,000 crore investments through hospitals, hotels, resorts and other recreational facilities to be developed by private players. “This is the first major private-public development project,” he said.
The project is located in Chitoor district of Andhra Pradesh, however is just 55 kms away from Chennai, which gives it a clear focus on manufacturing and IT/ITeS/BPO sectors. When fully operational the SEZ is likely to accommodate nearly 300 units of different categories.
“We have chosen Tada due to its proximity to Chennai airport, seaports and other logistic purposes apart from its well-established connectivity by rail and road. We may even add 2,000 acres in the second phase of development,” Sannareddy said. The Sri City SEZ is likely generate over 100,000 direct employment and another 1,75,000 jobs indirectly.
Sannareddy who is the chairman of Sri City SEZ is also main promoter and chairman of Mega Soft Ltd, which is a BSE listed company.