Chennai, Jan 19: Mahindra Industrial Park Ltd (MIPL) is trying to get its industrial park project off the ground soon in the wake of keen interest evinced by armoured vehicles manufacturer O'Gra of the US and motorcycle makers Lion Asia Pack of Singapore. MIPL is a joint venture promoted by Mahindra & Mahindra group in association with Infrastructure Leasing & Financial Services Ltd (IL&FS) and Tamil Nadu Industrial Development Corporation (Tidco).Although a tender to develop land and basic infrastructure like roads was opened early last year, MIPL, the implementing agency, is yet to issue the letter of intent (LoI) to the identified party for this phase, estimated to cost around Rs 25 crore. There were nine bidders for this work. But of the final main contenders including L&T, Nagarjuna Construction Co. (NCCL) emerged as the lowest bidder.
According to sources, several local companies have also shown firm commitment and booked so far 56 acres of land in the project including Emirate Trading Agency and Lakshmi Press Group of Rohtak.
In view of the interest generated by the project, MIPL is now realising the need to move fast and the LoI is to be issued in favour of NCCL by the end of this month, it is said.
The Mahindra Industrial Park was expected to attract investments in the region of Rs 3,500 to Rs 5,000 crore in the first phase originally estimated to get going by March 2,000. But sources now say that construction work will start by then. The first phase of developed plots of some 600 acres is likely to be ready only by March 2002.
The project is estimated to have an outlay of Rs 215 crore. Mahindras are holding 40 per cent equity stake, IL&FS 30 per cent and Tidco 11 per cent. The balance 19 per cent is to be held in the ratio of 4:3 by Mahindras and IL&FS respectively until such time it can be offloaded to other foreign partners.
Although MIPL has been holding discussions with companies like Richard Ellis and some German firms for operation and maintenance (O&M) contract and for taking some equity, no decision has yet been taken. Sources said MIPL would first attempt to develop the land and try to get companies to locate units in the park to be established in Maraimalai Nagar in the outskirts of Chennai. Finalisation of operation and maintenance contractors is unlikely before May or June, it is said.
Meanwhile, MIPL, after having tied up with Mitsubishi of Japan for marketing the park in south-east Asian countries, is also in talks with Cushman Wakefield, Richard Ellis, Colliers Jardine and JLW for more marketing support arrangements.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.