India Eco Summit: HIRCO to invest $5 bn in 10 yrs

Hiranandani-promoted HIRCO will invest up to $5 billion (Rs 25,000 crore) in developing two integrated townships in the country over the next 10 years.

"We are developing two projects in Chennai and Panvel near Mumbai which will have both residential and commercial properties. We are going to put in $4-5 billion over a period of 10 years in completing these projects," HIRCO Group CEO Priya Hiranandani Vandrevala told reporters on the sidelines of the India Economic Summit here.

The company has already raised $750 million as equity and $740 million of the proceeds has been invested, she added.

"The entire amount will be raised as debt and equity...30 per cent of the investment will be funded by the Hiranandnai family," she said.

The Chennai township would have a developed area of 28 million sq ft while Panvel would have 36 million sq ft area.

The average size of the apartments would be 1,100 sq ft and the company would offer the flats for Rs 3,500 per sq ft.

"We will complete the projects in different phases. Possession of the flats in Chennai under the first phase will start from March 2010," Vandrevala said.

The company is also looking at other projects, mainly residential, in the Western and Southern region.

"We are looking at several projects in Mumbai and many other cities....We are going to invest several billion dollars in those projects," she added.