The Tata group, in order to give a major thrust to the realty and infrastructure sectors, announced Wednesday that its wholly owned subsidiary Tata Realty and Infrastructure Ltd., or TRIL, would focus on developing long-term real estate and infrastructure projects worth Rs.20,000 crore over the next three years, media reports said.
TRIL proposes to invest Rs.11,000 crore in the real estate sector, Rs.5,000 crore in roads and Rs.4,000 crore in other infrastructure (excluding monorail and metro projects).
TRIL has raised an offshore fund, Tata Realty Initiatives Fund or TRIF-I, with a capital base of $700 million to fund the real estate projects. Besides, $50 million was raised from Tata Sons. For the infrastructure foray, the company will create an Infrastructure Fund of $1 billion before the end of the year and could consider one more fund.
TRIL Executive Director Phillie Karkaria said, "We will also see if a strategic investor will come through the special purpose vehicle (SPV) route. We will raise around Rs.1,400 crore on our own other than what the funds will contribute."
It was reported that TRIL has identified key thrust areas including roads and bridges, urban infrastructure, airports and logistic parks.
On the realty front, TRIL is now developing a 25-acre IT/ITeS SEZ in Chennai at a cost of Rs.3,800 crore. The project will house an international convention centre, residential apartments and a 5-star hotel. The project will be completed by December 2011.
TRIL is also developing two IT SEZs in Ahmedabad and Hinjewadi in Pune for group company TCS. It will also develop the third IT SEZ for TCS in Kolkata. In Amritsar, the firm has started developing a 7-lakh sq-ft retail complex. In Gurgaon, it is evaluating a residential and mixed used development on a 35- acre plot for the middle income group.
TRIL Managing Director and Chief Executive Officer, Sanjay Ubale, reportedly said In Mumbai that the company was set to bid for the second phase of the 36-km Metro rail, Charkop to Mankhurd via Bandra, in partnership with Mitsubishi, the monorail project as well as the proposed Navi Mumbai airport.
Ubale added that TRIL would also submit bids for the Navi Mumbai railway redevelopment project, the trans-harbour link between Sewri and Nhava.
The infrastructure company also plans to redevelop bus terminals in tier-2 cities and set up warehousing facilities across the country.
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