Bangalore to host R&D SEZ

NEW DELHI: After manufacturing, services and trading, it’s now the turn of research and development (R&D) to get onto the special economic zone (SEZ) bandwagon.

A group of information technology (IT) and private equity (PE) players have sought permission from the government for setting up a hi-tech R&D city near Bangalore under the SEZ scheme.

Christened Gandhi City, the first R&D SEZ will be spread across 1,000 acre and the initial investment is expected to be around Rs 700 crore. The application for Gandhi SEZ is scheduled to be considered by the Board of Approvals — the nodal authority for SEZs — next week.

This is the first such project to seek clearance under the SEZ scheme. The project is now being considered as a service sector SEZ.

The project is promoted by a number of investors, including Giri Devanur, founder of the Ivega Corporation which was merged into the TCG Group in ‘04.

Arjun Valluri, who was the chief of Intelligroup, will be a key partner in the special purpose vehicle which has been set up to promote Gandhi City, he said. He said that more investors would join the project once it moved into the consequent stages.