RAK Investments in Coimbatore IT SEZ

Ras Al Khaimah (RAK), the fourth largest of the seven emirates forming the United Arab Emirates (UAE), has identified Tamil Nadu for mega investments, and is expected to invest Rs 20,000 crore in developing infrastructure and feeder townships.

The Ras Al Khaimah Investment Authority (RAKIA), a semi-governmental agency set up by the government of RAK to promote investments in RAK and abroad, has identified two projects - one each at Coimbatore and Kadalur in Kancheepuram district - to invest about Rs 20,000 crore in residential township projects.

RAKIA is expected to invest about Rs 2,000 crore in the initial phase. The land for the two projects is being purchased privately by the promoters.

A memorandum of understanding was signed recently by S Ramasundaram, chairman and managing director, Tamil Nadu Industrial Development Corporation (Tidco) and Khater Massaad, chief executive officer of RAKIA, in the presence of Tamil Nadu chief minister M Karunanidhi for implementing the above projects, according to a government release.

The Coimbatore project would come up in an area of 1,000 acre and would have an IT SEZ supported by an integrated township, which will have social infrastructure including a golf course, shopping malls, a resort hotel, wellness spa, and single and multi-family homes with international standards. The project, which is expected to be completed in five years, will have about five million sq. ft of IT space and generate job opportunities for over 50,000 people.

RAKIA’s other project, which will come up on a 500-acre area in Kancheepuram district, will have water sports, leisure, entertainment and high-end residential and world class golf course. This project would provide job opportunities for over 15,000 people.

Coimbatore is emerging as the next major destination for the manufacturing sector. While several IT firms are looking at Coimbatore for future expansion, a number of manufacturing companies have also set up shop here due to availability of skilled labour.

Engineering and construction giant Larsen & Toubro has made Coimbatore its high-tech manufacturing hub. It has set up two facilities on over 300 acre in Coimbatore for the manufacture of high-end industrial valves and switchboards to cater to domestic and international markets.

Germany's Robert Bosch has also set up its engineering centre in Coimbatore to support its high-end technology products and services.