Mumbai: Infrastructure developer GMR Infrastructure Ltd said it had signed an initial agreement with Tamil Nadu Industrial Development Corp. to set up a multi-product special economic zone in the state.
A joint venture between the two companies plans to invest Rs2,300 crore to develop basic infrastructure for the 3,300-acre SEZ in the southern state, GMR said in a statement on on 6 August 2007.
However, the company did not specify its stake in the joint venture.
The special economic zone, catering to biotechnology, information technology, electronics and engineering sectors, is expected to start operations by 2009, and will be fully developed by 2014, GMR said.
Land acquisition for the project is expected to be completed in the next one year.
Last month, GVK Power & Infrastructure Ltd. <GVKP.BO> had also announced plans to invest 15 billion rupees for a similar multi-product SEZ in Tamil Nadu.
GMR shares were trading at 813.90 rupees, down 2.2 percent in a weak Mumbai market. REUTERS