According to the terms of the IIUS, the GOI will contribute a maximum of 75% of the funds required while 15% of the outlay has to be mobilized from the stakeholders and the balance 10% through grants from the State Government or the local Municipality, and term loans from financial institutions.

Under the guidance of the State Government, and as per the IIUS terms, an industrial cluster comprising of three Industrial Estates – Ambattur, Thirumudivakkam and Thirumazhisai – was formed.

The Special Purpose Vehicle called Chennai Auto Ancillary Industrial Infrastructure Upgradation Company (CAAIIUC) had prepared and submitted a detailed project report (DPR) with the professional assistance of ITCOT and TUV Rheinland (India) Pvt. Ltd., taking into account the gaps in infrastructure, with a total project outlay of Rs 51.5 crores.

The Government of India, Ministry of Industry & Commerce has accorded sanction to CAAIIUC for a total project outlay of Rs 47.20 crores vide their letter no. 5/28/4/2004-DBA-1 dt 4.08.2004.