Chennai FTWZ to get $300 mn foreign funds

J Matadee Eco Parks Private Ltd, the special purpose vehicle managing the upcoming free trade warehousing zone (FTWZ) at Sriperumbudur near Chennai, is all set to wrap up a total investment of $400 million as part of required funding for the mammoth project.

Sunil Rallan, managing director of J Matadee Eco Parks Private Ltd, the project promoter, told the Business Standard that his company has roped in two US and Singapore-based investors to bring in a strategic investment of $300 million into the project. A memorandum of understanding will be entered into with the respective parties in the last week of June, Rallan said.

J Matadee Eco Parks has so far rounded up funds of $100 million through a equity tie-up with a Singapore-based firm. The total project cost of the FTWZ is expected to touch $500 million over the next five years, Rallan said.

The Union Ministry of Commerce had in November last year accorded clearance for the 250-acre FTWZ at the manufacturing hub of Sriperumbudur, 45 km from Chennai. The Union Ministry of Commerce embargo had delayed project commencement into the middle of 2007, Rallan said, adding that 230 acres of contiguous land has been assembled so far for the project.