India's K. Matadee Eco Parks Pvt. Ltd. of Chennai has entered into an agreement with Chinese Dalian Free Trade Zone Service and Administration Co. to develop a 40-hectare Free Trade Warehousing Zone at Sriperumbudur in the country's southern state of Tamil Nadu.
Dalian will invest about $25 million of the project's estimated $260 million cost.
It is for the first time that a Chinese firm is involved in development of trade zones in India.
The agreement calls for Dalian to facilitate marketing the built-up space to Chinese companies, besides sharing its expertise with the Indian partner.
The site is equidistant from Chennai's seaport and airport.
The proposal is currently awaiting final approval from India's Board of Approval for Special Economic Zones.