Kerala clears Tata Housing's Rs 686-cr real estate project
Source : FE
May 14, 1999, 10:11:17 AM
Tata Housing Development Company Ltd, the joint venture real estate company promoted by India's corporate giants Tata Sons and Hindsutan Lever Ltd, has finally got the green signal from the Kerala government to set up a Rs 686 crore mega real estate project in Kochi.
The project, among other things includes, setting up of a township and bio-park and technology park for industrial and agriculture research. However, the promoters, it is reliably learnt, are likely to implement the project in a phased manner spanning over 10 years.
Tata Housing's project will be the biggest ever private sector investment in the real estate sector in the state in recent times.
The project is also expected to revive the sagging morale of the real estate industry in Kerala, which has been passing through a rough patch following severe liquidity crunch over the past two years.
Top sources in the Tata Housing Development Corporation told The
Financial Express on Thursday that the local administration department of the state government has given its approval for the Tata Housing Development Company to set up the mega real estate project spread over 30 acres here, a couple of days back. The project will come up in the Hindustan Lever Ltd premises, Tatapuram, formerly the Tata Oil Mills Company Ltd (Tomco). The Tatas-owned sops and detergent company was taken over by HLL a couple of years ago by clinching the first ever merger and acquisition deal in India's corporate history.
The Rs 686 crore real estate venture includes a five-star hotel complex, technology park, state-of-the-art would trade centre, business and commercial centres, shopping mall and housing complexes. The viability of the project was evaluated by consultant majors AF Ferguson & Co and Tata Economic Consultancy Ltd.
The Rs 250 crore first phase will cover the development of a township and the related amenities attached to it. The second phase will cover the establishment of science and technology parks at an estimated cost of another Rs 150 crore. The third and the final phase will see the setting up of other projects including a five star hotel and the world trade centre, sources added.
The Tata Housing's Kochi venture has been hanging fire for over one year following the delay in getting the green signal from the state authorities. The project, which was submitted to the Grater Cochin Development Authority (GCDA) for technical approval ran into rough whether as GCDA raised several technical objections. However, the dispute was resolved late last year and forwarded to the local administration department for the final clearance.
The project has also raised allegations that HLL was planning to wind up the Kochi unit. However, HLL sources dismissed this allegation as baseless.
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