Chinese companies to invest $3.5 billion in India in 5 years

GMR Infrastructure said on Monday that it has inked pacts with Guizhou International Investment Corp (GiIC), a consortium of three Chinese manufacturing firms, to set up units at its special economic zone (SEZ) in Kakinada, Andhra Pradesh, which will pave the way for $3.5-billion investment in the next five years.

"GiIC, a consortium of three Chinese manufacturing firms, has signed a memorandum of understanding (MoU) with Kakinada SEZ (KSEZ), a subsidiary of GMR Infrastructure, to set up an industrial park for high-end Chinese equipment manufacturing companies", the company stated in a Bombay Stock Exchange filing said.

The agreement was signed by KSEZ president Challa Prasanna in the presence of Prime Minister Narendra Modi and GMR infra business chairman BVN Rao and senior officials of GilC.

"Chinese companies that deal in power equipment, electronics, wind and solar energy and smart technologies are planning to set up their manufacturing units in Kakinada SEZ", it added.

GiIC would invest $500 million in developing the infrastructure and various facilities of the industrial park, which would house leading Chinese manufacturing industries.

These Chinese companies would additionally invest $2-$3 billion in setting up their operations over the next five years, according to the filing.

"Apart from world-class infrastructure facilities, these companies will also be able to avail of various benefits from the 'Make in India' campaign and Andhra Pradesh government's investment incentives in the state", it added.

GiIC plans to set up a 2,000-acre industrial park in Kakinada SEZ for the Chinese high-end equipment manufacturing companies. This world-class industrial park, developed by KSEZ and GiIC, will bring development across entire Kakinada, and generate more than 5,000 jobs for both skilled and unskilled workers, it said.