Bajoria in Rs 1000 cr realty push

From a sunset industry, jute baron Arun Bajoria is gearing up to cash in on the real estate development boom in Kolkata and has lined up Rs 1,000 crore investment in five mega projects.

Sources close to the development said Bajoria plans to develop the property of his company Hooghly Mills into an upmarket lifestyle resort overlooking the Hooghly river.

The project was estimated to cost upwards of Rs 500 crore and the 31 acres would house a residential complex, resort and a shopping mall spread over an area of eight lakh square feet.

Bajoria would tie-up with a national or foreign brand of repute for the resort and hotel.

The project would be funded with internal resources.

Kolkata's Mayor Subrata Mukherjee said he was aware of the project but pointed out that several of the clearances had to come from the state departments rather than Kolkata Municipal Corporation.

Sources said Bajoria has lined up five mega projects and the total size of these projects would be in the region of Rs 1,000 crore. The other projects were in the ideation stage.

Bajoria owns major properties in Kolkata's Park Street area, which also would be developed.

Bajoria is one the biggest jute mill owners having seven mills with a capacity of 700 tonne per day and enjoying a market share of 17 per cent of the total jute market.

An agreement with the workers has been signed for relocating the 800-1,000 labourers at Hooghly Mills.

However, clearances from the state government for the project was pending as it involves change in land use from factory to commercial.

Sources said, Bajoria was waiting for the jute season, which has been particularly good this year, to get over and would then pursue the state.

Sources said, the Hooghly Mills property had become unviable for running a jute mill. The norms laid down by the pollution control board could not be met as it was within the city.

Moreover, there was a transportation problem as truck movement within the city was only allowed from 10 PM to 10 AM.

The mill spent heavily on trucks everyday for transport of raw materials into the mill and moving finished goods out.

Unlike other jute mills, located in the suburbs, Hooghly was an in-city mill.

However, the metamorphosis of the Hooghly Mills property was not an isolated case.

Birla Corporation has another mill, Soorah, in the heart of the city, which would also be developed.

There was a growing trend among jute mill owners to convert surplus real estate into commercial properties.

Many of the owners have invested in new mills and Bajoria himself has built a gaint new mill in Asansol.

Industry sources said a number of jute mills have started the real estate development process and more were underway.