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UK Firm To Pump In Funds For Road Project

By Mrs Gupta, Section Roads in Kolkata
Posted on Thu May 31, 2007 at 03:41:57 AM EST

Roads come after habitation. But for a change, a road will be constructed to ease the way for a real-estate project in Budge Budge. The project will see FDI making a foray into the road sector in the state.

A UK-based firm has planned a major real estate project in South 24-Parganas and to make it happen, it will construct a road to ensure better connectivity. Around Rs 260 crore will be pumped in as FDI.

The land required for the project is to be purchased directly from landowners in Budge Budge. The project will
be kicked off this month.

Indrajit De, a New Yorkbased NRI, was instrumental in sealing a contract on the public-private-partnership model with Maheshtala Municipality in South 24-Parganas for a 30-lakh-sq ft residential project. The agreement was signed last month and the groundwork began three days ago.

De is the chairman of Eden Realty Ventures, which has formed a special purpose vehicle (SPV) with UK's Reit Asset Management Company.

The state stands to gain much from the PPP with this SPV that intends to widen the two-lane Budge Budge Trunk Road into a four-lane highway. Another 2.5-km metal road will be built between Nungi station and the local waste-disposal ground. The housing project that will include science, sports and cultural zones, will be situated somewhere in the middle of this 2.5-km stretch. The project will also include an auditorium, a library, indoorgames facilities.

The SPV has already purchased 21 acres for the project. Managing director of Eden Realty Ventures, Sachidanand Rai, said: "We have bought the land directly from landowners. There was no problem in acquiring the plots as they were mostly sali (low-lying) in nature and part of the Budge Budge industrial area."

The SPV signed an agreement with Mahestala Municipality last month. It has submitted the proposal to the state public works department (PWD). PWD minister Kshiti Goswami said: "We have to study the project. But there shouldn't be any problem with this FDI initiative."

Meanwhile, the SPV has held talks with the Maheshtala Municipality to build a metal road on the eastern side of Budge Budge Trunk Road.

Eden Realty Ventures has also formed another SPV with Reit Asset. This SPV, called Eden Infrastructure Private Limited, is into another PPP with the state refugee, relief and rehabilitation (RRR) department at Bonhooghly in North 24-Parganas. Rina Venkatraman, secretary, RRR department, said, "Around 800 families residing in the area will be rehabilitated in this project."

(Source - Times Of India, 31/05/07)

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