Arshiya International will be setting up its third free trade and warehousing zone (FTWZ) in Chennai instead of Nagpur in Maharashtra.

The company had acquired land in Nagpur for the FTWZ. However, it has decided to set up the FTWZ in Chennai due to better business opportunities. The proposed FTWZ will come up at an investment of Rs 1,000 crore. The Chennai facility will be a replica of its Khurja unit (Delhi), which is spread out over an area of about 130 acre with a rail terminal and a domestic industrial park. The company is already operating a 150 acre FTWZ with five warehouses in Panvel near Mumbai and has just commenced operations at its second FTWZ facility at Khurja near Delhi.

The six-lane rail terminal with a capacity to handle 10 trains per day and the 130-acre industrial park at Khurja FTWZ are expected to begin operation in the next few months. Also, plans are afoot to add 16 more warehouses in Phase II of Panvel facility by 2014.