The Hindu Business Line : Nanguneri SEZ: Avani Group may pick up majority stake

The deal
The private promoters, the US-based INFAC Group has identified the Avani Group as co-promoters.
Avani Group confirmed their participation but declined to provide details, which are being finalised.

Chennai , Sept. 10

A Kolkata-based real estate developer, the Avani Group, is likely to pick up a majority stake in the Nanguneri High-Tech Park, a special economic zone coming up near Tuticorin.

According to reliable sources, the State Government had given an ultimatum to the private promoters, the US-based INFAC Group, to achieve the financial closure for the project for which the foundation stone was laid in 2001. Nearly 2,000 acres land has been acquired for the project but the private promoters had not been able to implement the project due to financial constraints. The promoters had the choice of completing the project or returning the land.

The Nanguneri High Tech Park was promoted jointly by the US-based INFAC Group and the Tamil Nadu Industrial Development Company Ltd (TIDCO) through a special purpose vehicle, ATMAC Ltd.

The sources said that INFAC has identified the Avani Group as co-promoters. Officials in Avani Group confirmed their participation in the project. However, they declined to provide details, which are being finalised, they said.

When the project was envisaged over six years ago it was as an industrial park for high tech industries in engineering, electronics and pharmaceuticals to attract investments of over Rs 8,000 crore. The master plan was by JTC, Singapore. Subsequently, the Centre recognised it as a Special Economic Zone.

Now with the new rules stating that a minimum of 2,500 acres would be needed for a multi product SEZ, the private promoters will have to acquire an additional 500 acres, the sources said.

Last month the State Government announced that a 250-acre industrial park for pharmaceutical industries would come up at the Nanguneri Hi-Tech Park. It would have facilities for 50 large pharmaceutical units and 10 ancillaries. This would generate over 2,800 jobs directly and 2,800 indirectly.

Sources said that the State Government was keen to promote the project fast. With SEZs coming up all over the country with similar proposals and concessions to attract investments it would be the early movers to who get the big names in.

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