Parsvnath's Indore SEZ notified; to invest Rs 1,400 cr

NEW DELHI: Realty major Parsvnath Developers Ltd's plan to set up special economic zones are ready to take off with the government notifying its 76-acre IT and ITes SEZ in Indore entailing an investment of Rs 1,400 crore.

"We have received the notification for Indore SUEZ and work will start after complying with pending formalities in next 30-60 days," Parsvnath Chairman Pradeep Jain told media.

Jain said this was the company's first SEZ, which has been notified by the Centre. The development process would be completed within 36 months after construction begins.

SEZs would start contributing to the company's topline from next fiscal, he added. Parsvnath has formed a subsidiary, Parsvnath SEZ Ltd, for developing such projects. The investments would be funded through internal accruals and debt, Jain said.

Besides the Indore SEZ, the company has formal approvals for four more SEZs at Gurgaon, Dehradun, Kochi and Hyderabad and the notification was expected soon.

Parsvnath plans to invest Rs 5,200 crore in the next five years to construct these five SEZs for biotech and information technology sectors. A 25-acre SEZ in Hyderabad would be for bio-tech and bio-pharma sectors, while the remaining four would be IT and ITeS zones.

Jain said the company plans to develop 16 SEZs across the country. It has received in-principle approval for seven more SEZs, while four proposals are pending.

Parsvnath is undertaking land acquisition for seven SEZs, which would add an aggregate saleable area of 170 million sq ft. It presently has a land bank of 160 million sq ft and the construction is underway on 74 million sq ft.