Kakinada SEZ Ltd (KSEZ), a subsidiary of GMR Infrastructure Ltd (GIL), has signed a series of MoUs with firms interested in setting up manufacturing units in Kakinada SEZ, during the CII Partnership Summit 2017 held on January 27 and 28, 2017 in Visakhapatnam, Andhra Pradesh.
The GMR Group is developing a world class industrial zone, Kakinada SEZ, spread over 8,500 acres, and an all-weather, multicargo, deep water port with an estimated phase 1 capacity of 16 million tonnes.
Kakinada is often referred to as the “Houston of India” owing to the existence of hydrocarbon reserves and oil and gas infrastructure. Acknowledging the advantage of Kakinada SEZ, which is the largest industrial area with port connectivity in this region, Indian oil and gas PSU majors are joining together to set up a cracker unit with a proposed investment of Rs 40,000 crore in 2,000 acres of GMR’s Kakinada SEZ. The MoU was signed for this investment among GAIL, HPCL and the government of Andhra Pradesh during the Summit.
MoUs were also inked by KSEZ with 5 companies, which include Oil Country Tubular, Kamineni Steel & Power, United Seamless Tubular, Deepak Phenolics and DCM Shriram for setting up manufacturing facilities with a total investment of Rs 7,000 crore spread over 550 acres in the SEZ.
Technical and commercial discussions for lease of land in the SEZ will take place with the said companies over the following months, the release said.
G. M. Rao, Group Chairman of GMR Group, said: “GMR Group is proud to be partnering with the state of Andhra Pradesh in the development of a port-based investment region near Kakinada in the East Godavari District. We strongly support the Prime Minister, Narendra Modi’s “Make in India” campaign and the Chief Minister, N. Chandrababu Naidu’s endeavour to cement the place of the Sunrise State of AP as the most attractive destination for global investments into India. GMR Group’s Kakinada SEZ is all set to transform the industrial landscape of the Godavari Districts, bringing in significant investments and employment.”
Kakinada SEZ, which is centred in the Kakinada node of the Visakhapatnam-Chennai Industrial Corridor being developed by Asian Development Bank, would house various industries, including petrochemicals, food and agro processing, discrete manufacturing, electronics, toys, sports goods and apparel, etc., offering a combination of export-oriented SEZs and domestic market-oriented DTAs.
The SEZ is already operational and has units that employ nearly 1,000 people from the neighbouring villages, predominantly women. Several domestic and global business groups have shown interest in considering GMR’s Kakinada Investment Region (SIR) as their launching platform in Andhra Pradesh.