Rashtriya to build malls in MP

Rashtriya Group's real estate venture Prabhatam Buildwell is getting ready to develop commercial complexes -- shopping malls, food plazas and multiplexes "� in Jabalpur and Bhopal in Madhya Pradesh.

The two-city project is estimated to be Rs 400 crore and will be developed over 100 acres of land. Buildwell, part of the Rashtriya group with interests in aviation, education and advertising, has got the "in-principal" approval from the state government for its project.

The company, which is said to have completed the land acquisition process in the state, has earmarked an investment of Rs 250 crore for Bhopal and Rs 130 crore for Jabalpur.

"The company will start construction soon and the projects will take shape within a year from now," a government source told Business Standard.

The source added that the government will extend support to the company in accordance with the Industrial Promotion Policy and help with the environmental clearances and the land acquisition process.

In MP, the local real estate developers have been gradually acquiring chunks of lands on the outskirts of major cities to keep the big real estate companies away from occupying prime locations. Consequently, land prices are soaring and in parts of the state an acre of land could cost as much as Rs one crore.

It remains to be seen, however, if cities like Bhopal and Jabalpur can absorb such commercial complexes.

Bhopal has been branded as a Town of Clerks for its low consumer spends. Jabalpur, too, known as "culture capital" of the state, has a very low per capita income.

The unorganised garment manufacturing business and low-key tourism activities run the economy of the town.