Indian Economy News

Indian, Chinese companies sign $1.5bn MoU

Ahmedabad: The world's largest wholesale market may soon be set up in Ahmedabad. China's Jiaxing Kunlun Chuangyuan Investment Company Ltd (JKCICL) is partnering with city-based Kiri Infrastructure to set up the India International Trade Centre (IITC) project here.

The companies signed an MoU worth $1.5 billion on Thursday. The project will be built under a joint venture, Indochin Development Pvt Ltd. "The largest wholesale market will represent manufacturers and wholesalers of consumer and industrial goods of India as well as foreign countries," said Manish Kiri, CEO, Kiri Infrastructure.

JKCIC will invest money while KIPL will manage and operate the proposed centre. "$750 million will be invested in the first three years and the rest over the next two years," said Shankerbhai R Patel, founder, Kiri Infrastructure. Kiri Group's subsidiary, Kiri Dyes and Chemicals, has set up a JV with China-based Zhejiang Lonsen called Lonsen Kiri Chemical Industries in 2007.

"We have chosen Gujarat for this project as the state has attracted a lot of investors from China," said Yin Jian, vice-chairman, Zhejiang Federation of Industry and Commerce.

The project will create 2.5 lakh jobs and will come up on 500 acres of land. "We are in talks with the state government for land near Ahmedabad," added Patel. More than 4,000 flats will be constructed for employees.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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