Mahindra & Mahindra to set up IT park in Katunayake

Sri Lanka: India's leading heavy tractor manufacturer and Indian Infrastructure development giant Mahindra & Mahindra will set up an IT Park at Katunayake.

The company hopes to invest US$ 100 million for this project. When completed it would generate 60,000 new jobs.

The IT Park in Katunayake will be located on a 53-acre land that was identified as the site for a future IT park by the BOI. The land will yield 2.6- 3 million sq. feet of space that can be used for the different types of IT related activities.

The site would be built and managed by Mahindra & Mahindra and the company will market the site, making space available to interested investors in the IT, BPO and IT enabled services sectors.

The rationale behind this new agreement is to use the expertise of Mahindra & Mahindra to build the site in association with the Board of Investment. Mahindra & Mahindra would also develop a 900 acres special economic zone in Trincomalee.

Under this future agreement that will be signed in 30 days M&M and the Government of Sri Lanka will provide the basic infrastructure for the zone, while private entrepreneurs can invest there. This project will fast track development in the Eastern Province. If the East can be developed, this could easily add another 2% to Sri Lanka's current economic growth rate, Minister Amunugama.

Vice Chairman of Mahindra & Mahindra Arun Nanda said the main strength of his company was its ability to bring to the new IT zone top level IT companies from India and other countries. He added, 'The project will create 25,000 new software jobs in Sri Lanka, which is a tenfold increase of Sri Lanka's current pool of IT workers'.

In addition, there are another 5,000 other employment opportunities from support services. But Nanda is confident that the IT Zone in Katunayake will eventually create a staggering 60,000-70,000 indirect job opportunities, as the site will become a magnet for a wide range of activities.

State Minister of Commerce India Jairam Ramesh said the two projects undertaken by Mahindra & Mahindra show the versatility of the expertise of this leading Indian company' the IT Park is for white collar workers; the Trincomalee SEZ is for blue collar employees'.

Enterprise Development Minister Dr. Sarath Amunugama said Sri Lanka has a long relationship with M and M.

'The IT industry is a US$ 1 billion industry for Sri Lanka. M & M will undertake the total integrated development of the IT Park. It will be open for companies to invest,' he said.